Asia's biggest earnings downgrade in 2 weeks hits India
India's top companies just got their largest earnings estimate cut in Asia—down 1.2% in two weeks—following a lackluster season of quarterly earnings reports that began last year.
This has put extra pressure on stock markets and raised some eyebrows about what's next.
US tariffs on Indian exports raise concerns
The US has imposed tariffs up to 50% on Indian exports, which could slow the economy and hurt jobs, especially in sectors like textiles.
Even though India's GDP grew a strong 8.8% from FY22-24, company profits have been stuck in single digits for over a year.
To help out, PM Modi announced tax reforms, including plans to lower consumption taxes, to boost spending at home.
Earnings forecasts drop across key sectors
Earnings forecasts dropped across key sectors like autos, capital goods, food and beverages, and consumer durables after April-June results.
With about 9% of Nifty 50 company revenue coming from the US, these trade tensions are making investors cautious about what lies ahead.