Axis Bank's Q1 Profit Miss Weighs on India's Equity Benchmarks

India's equity benchmarks fell on Friday due to weak Axis Bank results, leading to broad-based losses in financial stocks. The Nifty 50 dropped 0.39% and the Sensex lost 0.41%. Axis Bank lost 4%, its worst day in six months, after a surprise quarterly profit drop. The market is anticipating a strong second half for corporate earnings, capping losses.

India's equity benchmarks experienced significant losses on Friday, with the Nifty 50 dropping by 0.39% and the Sensex falling by 0.41%. The primary driver behind these losses was the disappointing quarterly results from Axis Bank, which saw its stock decline by 4%, marking its worst performance in six months [2].

Axis Bank reported a 4% year-on-year drop in standalone net profit for Q1 FY26, with its Global Depository Receipts (GDRs) falling by 5% in value, now trading at $64.2 [2]. The bank's results, which were released post-market hours on Thursday, did not meet market expectations, leading to a sharp decline in its market performance. The GDR has now fallen in three of the last four trading sessions, reflecting broader concerns about the bank's operational resilience and ability to meet investor expectations [2].

The decline in Axis Bank's stock was particularly impactful, as it led to broad-based losses in financial stocks. The market is now anticipating a strong second half for corporate earnings, which may help to cap losses. The Nifty 50 is currently trading at 25,149.85 points, while the Sensex stands at 82,435.11 points, down from 82,757.09 points at the start of the trading day [1].

Despite the negative news from Axis Bank, there were some positive cues from global markets. Asian stocks rose on Thursday, with MSCI's broadest index for Asia-Pacific stocks outside Japan up by 0.7%, while U.S. retail sales and jobless claims data indicated resilience in the world's largest economy [3]. However, these positive global indicators did not offset the impact of the weak Axis Bank results on India's equity benchmarks.

Investors are now closely monitoring the earnings season, with a focus on the performance of Reliance Industries and JSW Steel, which are scheduled to report their first-quarter earnings on Friday [3]. The market remains cautious, with investors waiting for more clarity on the broader economic outlook and the potential impact of global trade tariff uncertainty.

References:
[1] https://economictimes.indiatimes.com/markets/indices/bse-sensex
[2] https://www.businesstoday.in/markets/stocks/story/axis-bank-gdr-declines-5-following-disappointing-q1-fy26-results-485153-2025-07-17
[3] https://sg.finance.yahoo.com/news/indias-equity-benchmarks-open-higher-024010175.html