Eleven companies, with a weightage of 44.1 percent on the Nifty, have reported their first quarter earnings so far.
It's been a mixed trend, with five companies missing analyst estimates.
Sales growth has been muted at an average 0.9 percent as compared to the June quarter last year, indicating a weak demand environment. Operating profit or EBITDA has grown 13.9 percent in the same period, mainly due to lower input costs. Net profit has risen 12.7 percent, driven mainly by private sector banks such as HDFC Bank, Kotak Mahindra Bank and IndusInd Bank, and cement major UltraTech Cement.
UltraTech Cement was the biggest positive surprise in terms of PAT growth while Axis Bank has been the biggest disappointment so far, with the number of bad loans rising well above analysts' expectations.
The managements of most companies sounded cautious, triggering fears of a downward revision in earnings.
The Nifty has risen 3.09 percent since the first Nifty company, IndusInd Bank, reported earnings on July 11, 2016.
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