A 40% Earnings Downgrade Awaits Indian Stocks, BofA Says
- Bank sees no upside to its year-end Nifty target of 18,000
- Slowing global growth, volatile commodities a risk: Amish Shah
This article is for subscribers only.
Earnings estimates for Indian firms may be slashed by about 40% this fiscal year and next due to a host of global and domestic risks, according to Bank of America Corp.
Consensus estimates for NSE Nifty 50 companies are lofty and haven’t moderated despite a weak outlook for software firms, analyst Amish Shah wrote in a note Thursday. Estimates for the 2024 and 2025 fiscal years may be slashed to 11% and 9% respectively from 17% and 16% as the March quarter earnings season gets underway, he added.