India Stocks Set for Gap-Up: Easing Tensions, Strong Q1 Results

Indian equity markets are set for a gap-up opening on Monday, driven by a decline in crude oil prices and ongoing bilateral trade negotiations with the US. Easing Middle East tensions also contribute to the positive sentiment.

Key Market Drivers

• Crude oil prices fell after Iran announced a halt to attacks, contingent on the US pausing hostilities.
• India is actively engaged in negotiating a bilateral trade agreement with the US.

Significant Corporate Announcements

Aurobindo Pharma has finalized a non-exclusive voluntary licensing agreement with MSD (Merck & Co.). This deal permits Aurobindo Pharma to supply generic alimatravir to 129 Low- & Middle-Income Countries (LMICs).

Maruti Suzuki India introduced the New Brezza Turbo Boosterjet, promising enhanced driving performance for consumers.

Financial Sector Sees Strong Q1 Gains

The financial sector reported robust first-quarter earnings for the June 2026 quarter, with several institutions posting substantial increases in Profit After Tax (PAT).

• CreditAccess Grameen reported a phenomenal 719.72% surge in PAT to Rs 493.39 crore.
• IDFC First Bank’s PAT vaulted by 132.39% to Rs 1,074.96 crore.
• AU Small Finance Bank saw a 37.03% increase in PAT to Rs 795.95 crore.
• SBFC Finance recorded a 28.97% rise in PAT to Rs 130.12 crore, alongside 26.52% revenue growth.
• Prudent Corporate Advisory Services registered 40.31% PAT growth to Rs 68.59 crore, with revenue up 23.44%.
• Arihant Capital Markets posted a 55.41% increase in PAT and a 50.16% rise in turnover.
• Share India Securities saw PAT grow by 32.19% on a 27.97% sales increase.
• KFin Technologies reported a marginal PAT rise to Rs 79.73 crore, with revenue up 8.47%.

Manufacturing and Infrastructure Deliver Notable Results

The manufacturing and infrastructure sectors also contributed positively to the Q1 earnings season, with several key players reporting significant growth figures.

• Steel Authority of India (SAIL) reported a 138.66% jump in PAT to Rs 1,636 crore.
• Lodha Developers’ PAT grew robustly by 62.89% to Rs 1,049.50 crore, supported by a 30.71% increase in sales.
• NTPC saw its PAT rise by 77.89% to Rs 5,080.74 crore.
• Neogen Chemicals achieved 36.61% PAT growth to Rs 19.44 crore, alongside a 36.68% sales increase.
• Kross reported a 24.41% PAT increase on a 32.28% sales growth.
• Seshasayee Paper saw PAT nearly double with 96.89% growth to Rs 33.59 crore, and sales up 27.68%.
• Monolithisch India’s PAT surged 59.39% to Rs 6.91 crore on a 22.94% revenue increase.
• Exxaro Tiles reported a 90.73% jump in PAT to Rs 0.94 crore.
• Container Corporation of India posted a modest 7.74% rise in PAT to Rs 277.65 crore.
• Mangalam Worldwide saw PAT increase by 16.34% to Rs 11.75 crore on 14.68% revenue growth.
• Vedant Fashions reported a 14.74% increase in PAT to Rs 80.61 crore with revenue up 7.17%.

Companies Report Q1 Losses and Declines

Despite a generally positive earnings season, some companies encountered significant financial setbacks during the June 2026 quarter, reporting losses or substantial declines in profitability.

• New India Assurance swung to a Net Loss of Rs -256.77 crore.
• Jindal Steel reported a 33.13% decline in PAT to Rs 1,085.97 crore, despite 22.99% revenue growth.
• Shakti Pumps (India) saw PAT plummet by 54.46% to Rs 42.99 crore, even with a 34.81% increase in sales.
• Dodla Dairy recorded a 65.12% fall in PAT.
• Birla Corporation’s PAT declined by 47.67%.

The market anticipates a bullish start, balancing geopolitical calm with a mixed bag of corporate earnings, highlighting strong performances in financials and manufacturing against some significant individual company losses.