Indian corporate earnings will likely see some recovery in the July-September after persistent weakness in the last few quarters, but the growth is expected to be patchy.
Citi Research expects 13 percent year-on-year earnings growth in the second quarter but it will be led largely by commodity-related sectors such as metals and energy. Excluding these companies, earnings will be flattish, a team of experts from the research and broking house told BloombergQuint.
That may be an improvement from the last two quarters but won’t be enough for markets to go higher from here, Citi Research said. “Most people are expecting earnings recovery and you need a positive surprise beyond that for the market to go up from here,” Surendra Goyal, Citi’s head Of India research said.
Watch the full discussion with Goyal , Director Saurabh Handa, Deputy Head Of India Research Prashant Nair and Vice President Manish Shukla.
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