“These results carry longer-term implications for economic growth across the involved states, particularly in West Bengal, where structural changes could unfold over time. We expect that once the impact of the election outcome is absorbed, the market focus would shift back to near-term triggers, including any progress in the West Asia, sector-specific news flow and the ongoing 4QFY26 earnings season. The earnings season so far has been largely in line with expectations, with a modest positive bias. Among 109 companies under Mofsl coverage that have reported, sales have been 1.6% ahead of estimates and PAT 2.6% above expectations.
Sectorally, banks, consumer, consumer durables, healthcare, metals and retail have delivered notable beats, while autos, NBFCs, Oil&Gas and utilities have reported misses at the aggregate PAT level. On Tuesday, Indian markets came under pressure amid escalating tensions in West Asia and the rupee hitting all time lows. Iran intensified attacks in the Middle East, targeting critical energy infrastructure in the UAE, rose concerns over supply disruptions. Brent crude surged to an intraday high of USD 115 per barrel, heightening inflation concerns for oil-importing economies like India.
The Nifty 50 closed at 24,033 (-0.4%), while broader markets remained relatively resilient, with the Midcap100 and Smallcap100 indices gaining 0.2% and 0.3%, respectively. The Indian rupee weakened to a record low of 95.5/USD, reflecting pressure from elevated crude prices and heightened geopolitical uncertainty,” he said.