Q2 results 2026: Indian equity markets came under intense selling pressure on Monday, with the Sensex and Nifty dropping more than 1,200 points from their intraday highs.
Investors turned cautious and booked profits after Friday’s recovery brought an end to the benchmark indices’ longest weekly losing streak in 25 years.
With now September quarter earnings season beginning, market investors will now be looking for signs of a recovery in corporate profitability to arrest the ongoing correction in the Sensex and Nifty.
Persistent foreign institutional investor (FII) outflows, valuation adjustments and global macroeconomic uncertainties have weighed on investor sentiment, making quarterly earnings a key trigger for the market’s next move. While stronger profits could lend support to benchmark indices, analysts believe the sustainability of any recovery will depend on the performance of individual companies and their forward-looking guidance.
Avinash Gorakshakar, Founder and Head of Research at Avinash Mentor Research, said investors are closely tracking corporate earnings after a turbulent period marked by FII selling and a prolonged market correction. He expects aggregate Nifty earnings growth to potentially reach the 15–20% range year-on-year, which could provide fundamental support to equities. However, he cautioned that investors are likely to wait for actual company results before taking a decisive view on the market’s direction.