In March, Indian stock markets experienced a notable selloff. This decline significantly affected investors’ wealth as escalating oil prices and geopolitical tensions heightened concerns among market participants. A report from JM Financial revealed that around 40% of Nifty 50 companies experienced cuts in their Earnings Per Share (EPS) estimates for FY27.
Nifty 50 Performance Overview
During the twelve months leading up to March 2026, the Nifty 50 index recorded a 5% negative return. The EPS estimates for FY26 and FY27 were adjusted downward by 7% and 5%, respectively. This widespread negative adjustment underlines the impact of the market selloff.
Key Contributors to EPS Cuts
Several sectors contributed significantly to the EPS estimate reductions. The most affected industries included:
- Automobiles
- Infrastructure and Ports
- Pharmaceuticals
- Insurance
- Cement
- Utilities
Prominent companies that reported substantial EPS cuts included:
- InterGlobe Aviation: Nearly 8% reduction
- NTPC: 1-1.4% reduction
- Maruti Suzuki: 1-1.4% reduction
- Larsen & Toubro (L&T): 1-1.4% reduction
- Bharti Airtel: 1-1.4% reduction
Stocks with EPS Upgrades
On a brighter note, 13 firms within the Nifty 50 received upgrades in their EPS estimates for FY27. Major upgrades occurred in sectors such as oil and gas, metals and mining, and utilities. The stocks with the most significant upgrades included:
- Hindustan Unilever: 10.1%
- ONGC: 4.2%
- Coal India: 2.4%
- Titan: 0.8%
- Power Grid: 0.5%
Broader Market Context
In March, both the Sensex and Nifty indices fell approximately 11%, mirroring global market trends amid escalating geopolitical tensions. Continuous worries surrounding elevated oil prices persist as tensions in the Middle East remain high.
On a related note, U.S. President Donald Trump issued threats regarding potential military action against Iran, warning of severe consequences if the country does not open the Strait of Hormuz, a critical transit route for oil. Concurrently, Iranian officials cautioned that such aggressive postures could lead to severe repercussions for the United States and the region.
Current Oil Prices
| Oil Type | Current Price |
|---|---|
| Brent Crude | $110 per barrel |
| WTI Crude | $111.5 per barrel |
The ongoing geopolitical instability continues to fuel uncertainty in the markets, reinforcing the volatility observed in the Nifty 50 and other indices.
