Is banks' earnings dominance in Nifty50 fading? A deep dive

Bank stocks: Banks, Elara Capital said, saw softer earnings in Q4 as credit growth remained subdued, even as deposit mobilization improved.

Q4 results review: India Inc exited the previous financial year 2024-25 (FY25) on a muted note with earnings growth restricted to low single digit for the entire year. What surprised stock market analysts, however, is the sharp divergence in the financial performance of various sectors in the last quarter of the year, i.e. Q4FY25, which revealed the fading dominance of banks in the earnings growth – historically, a market leader.

 

According to Elara Capital, the earnings report card of the March 2025 quarter shows that markets are in a "transition mode". While two-wheeler makers within the automobile sector