Stock market showed a positive trend for the third consecutive day, with banks taking the lead and pushing the Nifty up to 22,968. Notable gainers include Axis Bank and HDFC Bank, which reported strong Q4 growth, while Trent and Senco saw significant surges due to robust revenue figures.
Trent reported a significant 20% increase in Q4 revenue, reaching Rs 4,937 crore, sparking interest among market observers.
Trent reported a 20% increase in Q4 revenue to ₹4,937 crore compared to the previous year, marking an 18% growth in FY26 revenues overall. The surge was driven by a 21% boost in merchandise sales and an expansion of its store network, which now includes 1,286 stores under brands like Westside and Zudio.
Goldman Sachs adjusts its outlook for Trent, maintaining a neutral position but lowering the target price to INR 4,080.
Trent's shares soared by more than 3%, leading the Nifty index, following a robust Q4 performance report, suggesting improved business health.
Axis Securities has issued a warning about increased pressure on margins for companies like HUL, Dabur, and Asian Paints due to rising costs of crude and materials. The FMCG, paints, QSR, and retail sectors are experiencing cost shocks, with Jubilant FoodWorks, Trent, and V-Mart being the most vulnerable.
Escalating geopolitical tensions caused significant drops in shares of Trent, IndiGo, SBI, and Adani, as oil prices surged to $105 per barrel. Meanwhile, banking, cyclical, and auto stocks experienced selling pressure, with FPI's offloading Rs 8,331 crores due to the INR's weakness and global uncertainties.
Most Nifty 50 stocks are currently trading below their FY26 analyst targets, marking a decade high. Notably, Trent, TCS, and ITC underperform, while Shriram Finance stands out as the top outperformer with a significant 28.7% above its target.
The Nifty index is projected to close the fiscal year 2026 with a decline of over 5%, marking the worst performance in a decade and ending a positive trend spanning two years. Sector-wise, real estate and IT sectors experienced significant drops of nearly 20%, while public sector banks witnessed gains of around 30%. Notably, Shriram Finance and State Bank of India saw growth, while TCS and Trent faced declines. [Source: CNBC TV18]