India Market Update: April 2024

The Nifty 50 Index, which represents India’s top 50 blue-chip companies across various sectors, closed the month of April 2024 on an all-time-high of 22,783, surpassing its previous record high of 22,725. Despite the high watermark, the 2024 quarter-ending-March earnings season that kicked off in April saw both hits and misses, leading to an overall mixed market picture.

As of 12th May 2024, 37 out of 50 constituents of the Nifty 50 index have released their earnings. At an aggregate level, the index is currently reporting a positive sales surprise of +2.12% and a positive earnings surprise of +9.41%.1 Nominally, the index registered overall sales growth of 13.67% and earnings growth of 33.6%. Of the constituents that have reported, 32 companies registered positive sales growth and 28 companies registered positive earnings growth.2 The biggest contributor to growth both in terms of sales and earnings was the consumer discretionary sector followed by financials. On the flipside, the IT segment of the index registered the slowest growth both in terms of sales and earnings.

Banking Sector

The private banking pack i.e. ICICI Bank, HDFC Bank, Axis Bank, Kotak Bank & IndusInd Bank have released their quarterly numbers which, overall, were a mixed bag in terms of margin performance. The overall pace of Net Interest Margin (NIM) compression has moderated, even though funding costs may climb in the future. These banking stocks have a combined weighting of ~24% in the Nifty 50 Index, making them some of the biggest drivers of performance in the index.3

Earnings Summary

  • ICICI Bank met expectations in March 2024 (Q4 FY 2024) with 17% year-on-year (YoY) growth in profit amid reasonable OpEx (operating expense) and provisions.4 The pace of NIM contraction also decelerated by 3bps quarter-on-quarter (QoQ) and now sits at 4.4%. The bank has been generating RoA (Return on Assets) higher than 2% despite margins being under pressure thanks to a healthy growth momentum.
  • State Bank of India surpassed analyst expectations and reported Rs. 20,698 crores in profits for the quarter, representing a 24% rise in net profit aided by strong loan demand.5 The company’s GNPA (Gross Non-Performing Asset) stood at 2.24%, its lowest in 10 years. Net Interest Income (NII) stood at Rs. 41,655 crores, up by 3% YoY. RoA came in at 1.04% for FY24 up by 8 bps YoY, while Return on Equity (RoE) sat at 20% for FY24, up 0.89% YoY.6
  • HDFC Bank reported a 37% YoY growth quarterly profits, but growth fell short of investors’ expectations.7 The bank did however reap once-off gains from a stake sale in education loan subsidiary HDFC Credila Finance Services, which helped expand the bottom-line. The private bank delivered better-than-expected deposit growth, which rose 7.5% QoQ, and NIMs also improved by 4bps QoQ to 3.44% amid stability in its cost of funds.
  • Kotak Mahindra Bank reported positively for the quarter but analysts remain wary of the Reserve Bank of India’s (RBI’s) embargo on new credit card issuances. Despite the management’s assurance of ‘minimal’ financial impact in its earnings call, investors will likely remain watchful of how the private lender navigates the challenge. The bank’s consolidated net profit rose 16.8% YoY to Rs. 5,337 crores while Net Interest Income (NII) grew by 13% YoY to Rs. 6,909 crores.8 The bank reported a strong loan growth of Rs. 3.9 lakh crore as of March 2024, with average term deposits growing to Rs. 2.2 lakh crore. Margin pressures continued – Kotak Mahindra saw a contraction in NIM, which declined to 5.28% in the quarter, down from 5.75% a year earlier.9

Non-Banking Financial Companies (NBFC)

NBFCs in the Nifty 50 index reported mostly stable performance, but some saw a decline on the back of high credit costs even as their asset quality remains robust.

Earnings Summary

  • Bajaj Finance: Bajaj reported a 21.11% increase in consolidated net profit (Rs. 3,824.53 crore) thanks to a 31.36% jump in total income YoY.10 The company did however report a sharp contraction in NIM, falling 20bps QoQ due to an increase in the cost of funds and a gradual shift in AUM composition toward secured assets. New Loans rose to 4% YoY, but was lowered by 0.8 million sequentially on account of restrictions placed by Reserve Bank of India (RBI) due to the disbursal of loans under ‘eCOM’ and “Insta EMI Card”.11 This restriction has now been lifted with immediate effect by the RBI post the results of Q4 FY24.
  • M&M Finance: The company reported an increase of 21% YoY on its total income, but Profit After Tax (PAT) experienced a slight downturn of 10% YoY due to a 14% increase in NII which stood at Rs. 1,971 crores.12 NIM remained fairly stable at 7.1%. The company’s strategic initiative currently includes bolstering its presence in vehicle finance, particularly in pre-owned vehicle finance which grew by 18% during FY24.13

Auto Sector

The auto sector part of the index reported largely in-line results driven by growth in passenger vehicles, a better product mix, lower commodity costs and low operating leverage.

Earnings Summary

  • Bajaj Auto posted better-than-expected numbers for the quarter largely thanks to strong domestic performance. Its revenue rose 29% YoY to Rs. 11,480 crores amid a 25% YoY surge in volumes.14 Realisation was 6% lower QoQ. The company’s EBITDA margin was stable QoQ at 20.1%, lower raw material costs were offset by the higher expenses of de-leveraging operations. Consequently, adjusted PAT rose 35% YoY to Rs. 1,930 crores.15
  • Maruti Suzuki India reported better-than-expected underlying margins i.e. 12.9%, led by operating leverage and lower sales promotion expenses.16 Revenue grew by 19% YoY to Rs. 382.3 billion with volumes rising approx. 13% YoY (17% QoQ). The company reported increased EBITDA margins, up 52 bps QoQ to 12.3%, while PAT grew 48% YoY.17

IT Sector

Large IT companies maintained good margins while mid cap IT firms saw improved revenue growth. However, revenue visibility remains unclear due to the global economic slowdown, high interest rates and uncertainties surrounding GenAI’s impact. FY24 closed with a subdued IT sector performance likely signalling caution for FY25.

Earnings Summary

  • Tata Consultancy Services (TCS): Homegrown bellwether TCS led growth with US$29.1 billion revenue, a 3.4% growth in constant currency terms for the full Indian financial year ending March 2024.18
  • Infosys: The company missed estimates with revenue declining 2.2% QoQ.19 The company also forecasted a revenue growth of 1-3% in constant currency terms in FY25, and expects an operating margin of 20-22%.20
  • HCLTech: HCLTech was an outlier in the past quarters in terms of growth, bearing the brunt of the weakening global demand environment. The company’s profit dipped QoQ and overall weaker in margins saw forward guidance lowered by 3-5%.21
  • Tech Mahindra results fell short of analyst estimates. In Q4 FY24, its consolidated net profit plummeted nearly 41%, while revenue declined by 6.2% year-on-year.22 Despite the significant profit decline, the company outlined ambitious objectives for the next three years. Management revealed its vision for FY27, aiming to surpass peers in revenue growth, achieve a 15% EBIT margin, maintain a 30%+ ROCE profile, and return >85% of FCF (free cash flow).23

FMCG Sector

The FMCG sector witnessed subdued sales and flat profitability for the quarter. Experts attributed the stagnant profitability to elevated advertising and promotional expenses, rising royalty payments, and lacklustre sales, which partly offset the benefit of favourable raw material prices.

Earnings Summary

  • Hindustan Unilever saw a sluggish 2% sales volume growth.24 The beauty and personal care segment had no volume growth, whole soap sales dropped by 15%, and in the foods & refreshment segment, tea sales remained weak. Sales grew minimally due to price adjustments in key categories like soaps and detergents. Net profit declined by 3% due to one-time expenses and high interest costs.25
  • Nestle India saw a 9% increase in sales, mainly fuelled by growth in domestic businesses (representing around 96% of total sales).26 Exports performed well, growing 19% driven by strong demand for Maggi noodles and sauces in western markets. Despite high material costs for coffee and cocoa due to inflation (at all-time highs), the company managed to expand gross margins in the segment by 3.1% to 56.7%.27 The management did however expressed concerns about future inflation and anticipated a rise in milk prices due to a possible harsh summer ahead.


The organised retail sector grew well on healthy urban demand. Hotels benefitted from a rebound in corporate and wedding travel. On the other hand, infrastructure and construction related sectors (including cement and steel) posted muted numbers due to high base costs and intense competition.

Earnings Summary

  • Reliance Industries: The oil, telecom and retail giant Reliance Industries (RIL) reported mix results for Q4 FY2024. While the company saw double-digit growth in consolidated revenue, its profit numbers declined. Led by growth in oil-to-chemicals (O2C) and consumer businesses, RIL’s gross revenue increased by 10.8% YoY, but Profit After Tax (PAT) remained almost flat at Rs. 21,243 crores against Rs. 21,327 crores in the same quarter last year.28
  • Larsen & Toubro (L&T): The engineering conglomerate reported a 10% increase in net profit at Rs. 4,396 crores due to strong performance across infrastructure and energy segments.29 The company reduced its future margin guidance to 8.2-8.3% for FY25 citing supply chain disruptions, an uncertain political environments and ongoing geopolitical conflicts. L&T reported 24% YoY increase in the prospect pipeline to Rs. 12 trillion and a sharp reduction in the net working capital cycle to 12% of net sales. Despite lower margins, the company was able to improve RoE by 2.7% YoY, up to 14.9% for the quarter.30
  • Titan: The consumer discretionary giant reported high double-digit revenue growth for the quarter led by jewellery sales and other emerging businesses. Titan’s revenue jumped 17% YoY and the firm added 86 physical stores over the quarter.31 Overall stores count currently stands at 3,035. Domestic jewellery operations increased 19% YoY, led by buyers and same store sales both clocking double-digit growth. There was similar growth across gold and studded segments. In its emerging businesses, Taneira’s revenue surged 37% YoY. The brand opened 11 stores during the quarter, 8 of which were new city additions. Meanwhile, EyeCare’s revenue declined by 1% YOY.32


  • As of May 15, 2024, the valuation of the Nifty 50 index sits at 20.17x, which is at a slight discount of ~2% compared to its 5-year average of 21.50x.33 With the relatively better earnings and profitability seen in FY2024, large caps now seem reasonably valued compared to mid and small cap stocks.

Related Fund

NDIA: The Global X India Nifty 50 ETF (ASX: NDIA) invests in 50 of the largest companies listed in India.


Forecasts are not guaranteed and undue reliance should not be placed on them. This information is based on views held by Global X as at 20/05/2024.

Past performance is not a reliable indicator of future performance

Diversification does not ensure a profit nor guarantee against a loss. Brokerage commissions will reduce returns. This material represents an assessment of the market environment at a specific point in time and is not intended to be a forecast of future events, or a guarantee of future results.