June quarter earnings were subdued because of lower sales volumes and volatile input costs
Among stocks, which saw consistent upward FY22 earnings revision (three out of the past four quarters) were Dr. Reddy’s, Aurobindo Pharma, Cipla, Tata Motors, and TATA Steel, Elara Capital highlighted in the report.
Prabodh Agrawal of IIFL Institutional Equities says earnings will be the main driver of the market in the coming quarters. He is not betting on the market correcting 10%. He says cement, IT and auto sectors can see earnings upgrade over next 1-2 years.
Mahesh Nandurkar of CLSA believes government actions will help kickstart a much-needed earnings upgrade cycle.
Infosys reported better-than-expected earnings in the first quarter, prompting brokerages to raise their earnings estimates for the current financial year. However, many say Infy's performance will have to be consistent over the next few quarters for them to upgrade the stock.