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Informist, Wednesday, Jul. 8, 2026

By Arundathi A R

MUMBAI – With fresh escalation in the US-Iran conflict after US President Donald Trump said the ceasefire with Iran was over, sentiment around the domestic equity market may remain negative, with crude oil prices inching up on supply disruption fears. A decisive close below the 23800 level will be a negative development for the benchmark index, Vipin Kumar, assisstant vice-president of research at Globe Capital Market, said.

On Wednesday, the Nifty 50 settled at a nearly one-month closing low of 23882.05, down 516.65 points from Tuesday's close. Analysts see a close below 23800 pushing the Nifty 50 towards 23400–23500 points. According to Ruchit Jain of Motilal Oswal, the index will find support at around 23600 points and face resistance at 24500 points. Market participants will also watch out for June quarter corporate earnings, with Tata Consultancy Services set to detail its results Thursday.

"I don't want to deal with them anymore, they're scum," BBC News reported, quoting Trump at a summit of the North Atlantic Treaty Organization in Turkey. "They're sick people, they're led by sick people... As far as I'm concerned, it's over." According to the report, Trump added that negotiators on both sides could continue the talks, but "I think they're wasting their time." NATO chief Mark Rutte said the US strikes were "absolutely necessary", accusing Iran of "basically violating the ceasefire," BBC News reported.

At 1605 IST, Brent Crude futures on the Intercontinental Exchange were up nearly 6% at $78.43 a barrel. Crude oil prices, however, remained below $80 a barrel, and were nearly 8% higher than the pre-war levels of $72.87 a barrel. "So in case the crude oil prices continue to sustain below $70-$80, and there is no significant disruption on supply chain side, I don't think so there is nothing much to worry as far as the Indian equity markets are concerned," Sunny Agrawal, head of fundamental equity research at SBICAPS Securities, said.

Shares of TCS will be in focus as the company will announce its June quarter earnings Thursday. It is expected to report a marginal sequential decline in its consolidated bottom line owing to annual salary hikes rolled out across the organisation from Apr. 1. However, its revenue for the quarter is expected to rise slightly, with the depreciation of the rupee against the dollar. Shares of the company ended almost 2% lower Wednesday.

"For FY27 (2026-27(Apr-Mar), we believe that Nifty 50, as an universe, can deliver 11-12% kind of earning growth,' said Agrawal of SBICAPS. For the June quarter, he expects Nifty 50 companies to post double-digit earning growth.

Broking firm Kotak Institutional Equities sees the aggregate net profit of Nifty 50 companies rising nearly 10% on year in the June quarter and that of BSE Sensex constituents rising 4.8%. According to the brokerage's strategy report, the earnings-per-share for the Nifty 50 index is expected at INR 1,244 for 2026-27 (Apr-Mar) and at INR 1,426 for FY28. Excluding oil marketing companies, all others under the coverage are expected to post on-year aggregate growth of 14.6% in net income for Apr-Jun, Kotak said. 

Meanwhile, JM Financial Institutional Securities expects the cumulative profit of Nifty 50 companies to rise only 4.5% on year in the June quarter. The brokerage sees the aggregate revenue of Nifty 50 companies up 19% on year. It expects the net profit of Nifty 50 companies to be dragged down by a poor show by automobile, pharmaceutical, consumer goods, and public sector banks in the June quarter.

According to Agrawal of SBICAPS, the second half of FY27 will be pretty robust in terms of earnings growth. "And that should give good visibility to foreign institutional investors to come and invest in India," he said. On Tuesday, foreign investors net bought shares worth INR 3.93 billion, while domestic investors net sold shares worth INR 3.83 billion. Foreign investors have turned net buyers for the past two sessions, supporting the equity market. 

"Going ahead, the market's direction will largely be determined by the outcome of the Fed's July policy meeting, the impact of the expiration of the current US reciprocal tariff truce, and the evolution of geopolitical tensions in the Middle East, whether through escalation or resolution," Vinod Nair, head of research at Geojit Investments, said in a note.  End

US$1 = INR 95.56

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

Edited by Avishek Dutta

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