{"id":78386,"date":"2025-08-19T18:38:05","date_gmt":"2025-08-19T18:38:05","guid":{"rendered":"https:\/\/www.newsbeep.com\/uk\/78386\/"},"modified":"2025-08-19T18:38:05","modified_gmt":"2025-08-19T18:38:05","slug":"these-5-nifty-stocks-drove-80-of-q1fy26-earnings-growth-is-it-time-to-buy","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/uk\/78386\/","title":{"rendered":"These 5 Nifty stocks drove 80% of Q1FY26 earnings growth. Is it time to Buy?"},"content":{"rendered":"

India\u2019s equity markets continue to scale new heights, buoyed by investor optimism and robust corporate earnings. However, a deeper look under the hood of the Nifty50 earnings picture paints a more uneven reality. According to a recent analysis by Motilal Oswal, just five heavyweight stocks, Bharti Airtel<\/a>, Reliance Industries<\/a>, SBI, HDFC Bank<\/a>, and ICICI Bank<\/a>, accounted for a staggering 77% of the incremental year-on-year earnings growth for the index in Q1FY26.
While the Nifty50 posted a modest single-digit earnings growth for the fifth consecutive quarter, this growth was highly concentrated. The broad base of Nifty constituents struggled to keep pace, with many blue-chip names like Coal India, Tata Motors, IndusInd Bank, ONGC, HCL Tech, Kotak Mahindra Bank, Axis Bank, HUL, and Nestle either reporting flat or negative earnings contributions.<\/p>\n

Motilal Oswal\u2019s report indicates varied performance across sectors this quarter, the Banking sector delivered a steady yet subdued performance this quarter, with momentum slowing after a strong Q4. Margins (NIMs) came under pressure across the board\u2014more significantly for private banks, owing to their higher exposure to repo-linked loans and rising slippages. Public sector banks also felt the squeeze due to faster loan repricing.<\/p>\n

In contrast, the Auto sector saw its ancillary players take the spotlight. While overall revenue grew 4% year-on-year, largely driven by OEMs like Hyundai and Maruti, it was the auto component manufacturers who outperformed, clocking a robust 6% growth. Their earnings surprised on the upside, aided by non-core gains such as mark-to-market income.\"ETLive EventsThe Consumer sector showed encouraging signs of revival, with revenue growing 8.3% YoY\u2014beating expectations. Even when excluding ITC, the segment maintained a healthy 6.2% growth. Demand conditions remained stable, buoyed by easing inflation and a supportive monsoon.
Meanwhile, IT Services continued to face headwinds. Growth remained tepid, with median revenue inching up just 0.8% quarter-on-quarter. Cautious enterprise spending, global macro uncertainty, and GenAI-led productivity efficiencies continued to weigh on demand, keeping the sector\u2019s outlook soft.
Buying Opportunity: What Analysts SayAccording to Trendlyne\u2019s consensus estimates, analysts remain bullish on India\u2019s top large-cap stocks, with strong buy recommendations and attractive upside potential across the board. The optimism reflects confidence in the companies\u2019 fundamentals and growth outlook over the coming months.Bharti Airtel: Out of 36 analysts, the stock has received a BUY rating, with a projected upside of 8%, supported by steady performance in the telecom sector.Reliance Industries: Endorsed by 34 analysts with a BUY recommendation, the stock is expected to deliver a 16% upside, reflecting positive sentiment around its diversified business and energy transition plans.<\/p>\n

State Bank of India (SBI): With inputs from 41 analysts, SBI holds a BUY rating and a 13.4% upside, driven by consistent earnings and improved asset quality.<\/p>\n

HDFC Bank: Receiving a STRONG BUY from 41 analysts, HDFC Bank is expected to see a 14.1% upside, backed by its strong retail franchise and stable asset profile.
ICICI Bank: Topping the list, ICICI Bank has earned a STRONG BUY from 42 analysts, with the highest projected upside of 16.8%, thanks to its robust credit growth and improving margins.<\/p>\n

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)<\/p>\n","protected":false},"excerpt":{"rendered":"India\u2019s equity markets continue to scale new heights, buoyed by investor optimism and robust corporate earnings. However, a…\n","protected":false},"author":2,"featured_media":78387,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[12],"tags":[39963,12068,39961,84,39964,5161,5163,39966,39965,39967,467,39959,39958,21251,39960,39962,31159,56,54,55],"class_list":["post-78386","post","type-post","status-publish","format-standard","has-post-thumbnail","category-markets","tag-auto-sector-earnings-india","tag-bharti-airtel","tag-bharti-airtel-growth","tag-business","tag-consumer-sector-revival","tag-hdfc-bank","tag-icici-bank","tag-indian-stock-market-outlook","tag-it-sector-slowdown-india","tag-large-cap-buy-ratings","tag-markets","tag-motilal-oswal-report","tag-nifty50-earnings-q1fy26","tag-reliance-industries","tag-reliance-industries-earnings","tag-sbi-hdfc-icici-bank-results","tag-state-bank-of-india","tag-uk","tag-united-kingdom","tag-unitedkingdom"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/78386","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/comments?post=78386"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/78386\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media\/78387"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media?parent=78386"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/categories?post=78386"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/tags?post=78386"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}