Meanwhile, market focus is gradually shifting toward the upcoming corporate earnings season. “The initial outlook remains subdued, with the risk of further downward revisions to earnings growth, largely due to tepid demand and continued margin pressures. The IT sector, in particular, is expected to report soft numbers, and investor sentiment will hinge heavily on management commentary,” added Nair.
Indian equity markets plunged sharply last week amid weak global cues, triggered by reciprocal tariffs announced by US President Donald Trump. The move sparked a massive selloff in US markets and the spillover effects were felt across global equity markets, including India.
US equity markets recently suffered a decline of nearly 6%, marking their worst week since 2020. Local benchmark indices- BSE Sensex and NSE Nifty50 – fell about 2.5% each last week.
Manish Jain, Chief Strategy Officer & Director, Mirae Asset Capital Markets said that April is starting with uncertainty and Tariff and retaliation might keep the markets on edge.
“So, it’s tough to expect a positive start (for FY26). I don’t think it’s all factored in. To factor in something you need to be able to quantify – that’s the biggest challenge. So, “Uncertainty” is the key factor here. We don’t know when and where it will settle,” stated Jain.
