Earnings

• Indian equities remain attractive for long-term investment, driven by a recovery in corporate earnings, increased private capital expenditure, and new trade deals. • The Nifty index valuations are currently aligned with their 10-year average, suggesting a stable entry point for investors. • Despite geopolitical tensions, crude oil fluctuations, and corporate earnings volatility, Indian equities closed July with a 2.2 per cent gain.

• A new report released on August 10 indicates that Indian equities remain attractive for long-term investment despite recent market volatility. • The positive outlook is driven by a recovery in corporate earnings, an increase in private capital expenditure, and the potential for new trade deals. • Despite pressures from geopolitical tensions, crude oil price fluctuations, and earnings reports, Indian equities closed July with a 2.2 per cent gain.

• Economist McKeown warns that an AI earnings bust would most heavily impact economies that benefited from the investment boom, specifically the U.S., Taiwan, Korea, Mexico, and China. • In contrast, Europe is expected to have relatively little near-term exposure due to its limited involvement in the current AI infrastructure buildout. • The risk intensifies if demand weakens permanently due to a fundamental reassessment of AI's actual technological potential.

• European equities are seeing a surge in global investor interest driven by strengthening corporate earnings and improving economic data. • The Stoxx Europe 600 Index recently completed its longest winning streak since June, gaining 11% so far in 2026. • Major regional benchmarks, including Germany’s DAX, France’s CAC 40, and Italy’s FTSE MIB, have all reached record highs.

• The pan-European Stoxx 600 index closed the week at an all-time high of 660.25 points, marking a 0.3% increase. • The rally was driven by strong corporate earnings and a surprising US nonfarm payrolls report showing job losses in the world's largest economy. • This soft US labor data is significant as it reduces the perceived likelihood that the US Federal Reserve will implement an interest rate hike in September.

• European stock markets, including the DAX, CAC, and FTSE 100, are on track for their strongest weekly performance since late June. • Major regional indices have reached fresh record highs, driven by a robust round of corporate earnings that has bolstered investor sentiment. • This positive momentum has allowed markets to offset renewed geopolitical concerns and volatility.

• Major US stock indices rallied today, with the Nasdaq 100 leading gains at +0.89%, followed by the S&P 500 (+0.37%) and the Dow Jones Industrial Average (+0.14%). • The surge was triggered by July nonfarm payrolls data showing an unexpected decline in jobs and lower-than-anticipated growth in average hourly earnings. • This economic cooling caused bond yields to tumble and strengthened investor speculation that the Federal Reserve will avoid further interest rate hikes.