October 11, 2016 5:36:14 pm
Net profit for Nifty 50 companies is likely to grow by 6 per cent during the second quarter of the current fiscal year-on-year, the highest level in eight quarters, says a report. Sales of companies constituting the 50-share well-diversified NSE index are seen to grow 3 per cent in the July-September quarter compared with the year-ago period, said the report brought out by leading brokerage Motilal Oswal.
Watch What Else is Making news
The earnings performance will be driven by domestic cyclicals like automobiles, cement and select private sector banks. Besides, consumer and NBFCs are likely to post healthy growth.
“Nifty PAT (profit after tax) is likely to grow by 6 per cent year-on-year in the second quarter of 2016-17 – the highest in eight quarters,” the report predicted.
According to the report, nearly half of the Nifty universe is expected to post 15 per cent expansion in net profit, led by autos, paints, cement and certain private banks.
“Another notable feature of this quarter is the year-on-year PAT decline of large-cap technology companies (Infosys, Wipro and Tech Mahindra),” it added.
Its projection is a majority of the growth in earnings will be driven by five companies – Bank of Baroda, Reliance Industries, Tata Motors, HDFC Bank and Tata Steel.
Stock breadth has been positive in the current calendar year so far, with 36 Nifty shares trading higher.
All technology and telecom stocks on the NSE benchmark index gave negative returns, the report noted.
📣 The Indian Express is now on Telegram. Click here to join our channel (@indianexpress) and stay updated with the latest headlines
- The Indian Express website has been rated GREEN for its credibility and trustworthiness by Newsguard, a global service that rates news sources for their journalistic standards.