Nifty-listed companies delivered a stronger-than-expected start to the first-quarter earnings season, according to an analysis by Motilal Oswal. Profits across 39 reporting Nifty constituents grew 11% year-on-year, surpassing the brokerage's earlier projection of 7% growth. The results come against the backdrop of India remaining one of the fastest-growing major economies, making the earnings trajectory a closely watched indicator of corporate health and demand conditions.

The earnings upswing was concentrated in a handful of heavyweights. Reliance Industries, JSW Steel, ICICI Bank, Bajaj Finance, and Axis Bank together accounted for 59% of the incremental profit growth reported by the index's constituent companies. The heavy skew toward financials and commodity producers points to a narrow earnings recovery, with broad-based participation across sectors still limited at this stage of the season.

On the other hand, several major names weighed on aggregate earnings. InterGlobe Aviation (the operator of IndiGo), ITC, Dr. Reddy's Laboratories, Cipla, and Maruti Suzuki were identified as the primary drags on overall performance during the quarter. The drag list spans consumer goods, pharmaceuticals, aviation, and autos—sectors sensitive to discretionary spending, input costs, and competitive pressures—suggesting that demand recovery outside of financials and metals remains uneven.

The report also highlighted preferences for certain large-cap stocks. Motilal Oswal identified Bharti Airtel, State Bank of India (SBI), and ICICI Bank among its top stock picks.

The Nifty 50 is a benchmark index of the National Stock Exchange of India (NSE), comprising 50 large-cap companies across key sectors of the Indian economy. It is one of the most widely tracked equity indices in India, alongside the BSE Sensex.

Source: Economic Times Markets