Indian firms seen posting faster Q2 profit growth despite global headwinds
Indian companies’ September-quarter net profit is forecast to rise about 20% year-on-year on average, with Motilal Oswal the most optimistic at +27%, despite record foreign-investor selling and global headwinds, according to brokerages.
The optimism comes even as the Nifty heads toward its worst year in 15 years, the monsoon was the weakest in a decade — hurting rural demand — and the RBI hiked the repo rate to 5.50% earlier in the week in a hawkish move.
Analysts expect earnings momentum to be led by banks, IT and consumer-facing sectors, with TCS’s estimate-beating September quarter setting an encouraging tone for the results season.
Whether the profit rebound can sustain without foreign buying remains the market’s central question into the December quarter.
