The Nifty 50 Index remained on edge on Friday as investors waited for the upcoming earnings by some of India’s biggest banks. It was trading at ₹25,720, down by 2.4% from its highest point this year.
Top Indian banks to publish earnings
The Nifty 50 Index, which tracks the biggest companies in India, will be in the spotlight as key banks publish their financial results.
Analysts believe that these companies will publish strong earnings as the impact of the Reserve Bank of India (RBI) starts to boost their loan growth metrics.
HDFC, one of the country’s biggest bank, will publish its numbers on Saturday, with analysts expecting its earnings growth to continue. Analysts expect the profit growth to be 9.7%, the highest among other banks.
HDFC is emerging from a period in which it decided to deliberately slow down its lending in order to boost its liquidity buffers. As such, analysts now expect that it will experience some recovery in lending margins after two quarters of contraction.
The earnings come at a time when its stock is struggling after falling from last year’s high of INR 1,019 to the current INR 920. It is trading at its lowest level since April last year.
ICICI is the other Nifty 50 bank that will release its numbers on Saturday. Unlike HDFC, ICIC’s stock has rebounded recently and is hovering at its highest level since August last year. Analysts expect the company’s results to show that its profit growth came in at 5.1%, helped by its strong loan growth.
Yes Bank will publish its numbers on Saturday as well. While it is not a Nifty 50 Index constituent, it is one of the closely-watched Indian bank. Its stock had jumped in the past few months as the turnaround efforts accelerated. Analysts expect that its revenue will come in at INR 42 billion from the previous 37 billion rupees.
The other notable Nifty 50 Index bank to watch is IndusInd, which has been one of the top laggards in the country. Its business had come under pressure in the past few years because of its toxic loan book. It also experienced an INR 19.6 billion accounting discrepancy and replaced its senior leaders. IndusInd will publish its numbers on Friday next week.
Other Indian banks like Kotak Mahindra, Axis Bank, and State Bank of India will publish their numbers later this month.
Additionally, other companies that will publish their numbers next week are Hindustan Zinc, Dr. Reddy’s Laboratories, Shriram Finance, and Vedanta.
The Nifty Index is also reacting to the ongoing developments with the United States after Donald Trump threatened to boost tariffs on goods from the country to 500%. India will also be affected after Trump said that he would impose a tariff on countries doing business with Iran.
Nifty 50 Index technical analysis
The daily timeframe chart shows that the Nifty 50 Index has remained in a tight range in the past few months. It has remained inside a narrow range between the key resistance and support levels at INR 26,360 and INR 25,710.
It has remained inside the 50-day and 100-day Exponential Moving Averages (EMA). Most importantly, it has formed a bullish flag pattern, which is made up of a flagpole and a horizontal channel.
Therefore, the index will likely have a bullish breakout, potentially to the upper side of the horizontal channel at INR 26,360. A move above that level will point to more gains, potentially to the psychological level at INR 27,000.
On the other hand, a move below the year-to-date low of INR 25,467 will invalidate the bullish outlook.
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