Earnings recovery is broadening, crude spikes unlikely to derail markets: Anand Rathi

Q1FY27 earnings are rebounding from a subdued FY26, with Nifty 50 and Nifty 100 companies reporting about 6.6 percent YoY EPS growth so far, while large portions of the Nifty Midcap 150 and Smallcap 250 have posted earnings growth of 11.3 percent and 52.7 percent respectively. Banks and financial services lead sectoral growth at 18-20 percent, supported by steady credit growth and stable asset quality, while auto companies are seeing strong results and oil and gas firms face headwinds from commodity volatility. The RBI's FCNR(B) concessional swap scheme has mobilized around $20 billion, with the main benefit being improved liquidity and macroeconomic stability rather than direct bank profitability, and historical analysis suggests crude oil spikes from geopolitical conflicts have typically been temporary.