Several brokerages have downgraded their earnings estimates post Q1FY20 earnings.
The Nifty earnings for FY20 and FY21 have been cut by 5 percent by CLSA. However, despite that, the forecast for earnings for FY20 is close to 18 percent and for FY21 close to 21 percent.
Motilal Oswal has cut the Nifty earnings per share (EPS) by 4 percent and it believes that the downgrade versus the upgrade ratio is close to 3X post Q1. Motilal Oswal is expecting Nifty EPS growth of 16.5 percent for FY20 and close to 20 percent for FY21.
I-Sec has cut down the EPS by close to 2.5 percent post Q1 earnings and it feels that the number of downgrades was almost 3X of upgrades post the Q1 number.
There is a clear risk of both FY20 and FY21 earnings getting missed given that there is a slowdown and that Q1 was very weak across the board.
CNBC-TV18's Nimesh Shah has more details...