Earnings likely to improve through FY16: Morgan Stanley

Ridham Desai, Morgan Stanley said through the earnings season, consensus has revised FY2016 growth estimates down by 3 percent while revising FY2017 growth estimates up by 0.23 percent.

At the end of this season, consensus estimates Sensex earnings growth at 10 percent Y-o-Y for FY2016 and 20 percent Y-o-Y for FY2017, he added.

According to him, the earnings cycle is turning given India's macro is healing and earnings will likely improve through FY2016. As this quarter showed, the risk to India's earnings comes largely from global sources, Desai said.