Key Insights from Q4 FY24 Earnings for Indian Stock Markets and Sectors

The Q4 earnings results season is drawing to a close and thousands of companies have announced their quarterly results for the final three months of FY24. While it has been an optimistic period for revenue and profits overall, we’ve had a mix of winners and losers, as is the case with each quarter in the Indian stock markets. 

While it is crucial to know which companies have reported profits and which have incurred losses, you should also be aware of the overall outlook for the market and the different stock market sectors. This will help you make informed investment decisions.

Tracing Nifty and Sensex Performance in Q4 FY24

With many companies that comprise the Nifty 50 and the BSE Sensex delivering stellar Q4 results, it’s natural that you may want to know how these broad market indices performed in the last quarter of FY24. So, let us take a closer look at these details and the insights they offer. 

In Q4 FY24, both the Nifty 50 and Sensex posted notable gains. The Nifty 50 increased by 2.74% from January to March 2024, marking its best fiscal performance in three years with an overall gain of about 29% for the fiscal year. It also achieved several record highs, including surpassing the 22,000 mark in early March​.

The Sensex also mirrored this performance, closing Q4 with a rise of 0.90% at 73,651.35. Throughout FY24, the Sensex benefited from strong performances in financial services and other sectors, supported by the Reserve Bank of India's relaxed investment norms for lenders​.

Mid and small-cap stocks also saw impressive growth, with the Nifty Small Cap 100 index surging by 76.15% and the Nifty Midcap 100 index by 61.21%. These gains were driven by strong retail investor interest and significant wins in sectors like defence and renewable energy.

Decoding Sectoral Performance in Q4 FY24 

To further understand how the Indian stock market performed in the last quarter of the previous financial year, we need to take a deep dive into the stock market sectors. Even as the top companies in these segments continue to release their Q4 earnings, here is the report card for the major sectors and how they fared between January to March 2024. 

• Financial Services

The financial services sector experienced significant growth in Q4 FY24. A large part of this can be traced back to the Reserve Bank of India's easing of investment norms for lenders. This provided a boost for banks and financial institutions and offered them more flexibility in their investments. Major financial stocks like Bajaj Finance and Bajaj Finserv saw notable gains due to strong fundamentals and market optimism.

• Technology 

Driven by increasing digitalisation and strong demand for IT services, the technology sector continued its upward trajectory. Key players like Infosys and TCS reported healthy earnings, supported by new client acquisitions and expansion into emerging markets. The sector's resilience was also evident despite global economic uncertainties, primarily due to its critical role in India's growth story​.

• Automobiles 

The auto sector saw a mixed performance in the Q4 results. While leading manufacturers like Tata Motors and Bajaj Auto reported substantial gains, the overall sector faced challenges due to fluctuating raw material prices and supply chain disruptions. The introduction of new models and increased consumer demand for electric vehicles (EVs) provided a positive outlook for the future.

• Pharmaceuticals

The pharmaceutical sector had a stable fourth quarter in FY24, with companies like Biocon gaining approval for new drugs. This boosted investor confidence in the sector, which benefited from a consistent demand for healthcare products and services — both domestically and internationally.

• Energy

The energy sector saw significant advancements, particularly in the renewable energy segment. Investments in renewable projects and government initiatives to promote sustainable energy sources led to notable gains for companies in this space. Traditional energy companies also performed well, with ONGC and Reliance Industries reporting strong financial results.

• Real Estate

Spurred on by increased demand for residential and commercial properties, the real estate sector also showed signs of recovery. Government incentives and lower interest rates also played a major role in reviving this sector. Companies like Prestige Estates and Macro Tech Developers reported positive Q4 earnings, signalling a rebound in real estate investments.

• Consumer Goods

The consumer goods sector recorded steady growth as well. This progress was supported by robust consumer demand and increased spending during the festive season. Leading FMCG companies like Hindustan Unilever and ITC reported strong sales during the quarter, thanks to innovative product launches and expanded distribution networks​.

Conclusion

These insights about Q4 results and earnings can help you better understand how the Indian stock market performed in the last quarter of FY24. As we approach the end of another quarter in the new financial year, keep an eye out for the next round of earnings reports from the companies on your radar. These insights are crucial for making informed investment decisions. 

Tracking each new round of results is easier on the Motilal Oswal Research 360 platform. With a dedicated section for result analysis, this platform gives you critical insights about the top-performing industries as well as stock-wise and industry-wise data. You can also use the results calendar to monitor which companies are due to release their earnings reports.