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Brace For Weak Indian Q1 Earnings: BofA-ML

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Indian corporate earnings results for Jan-March "should be weak," warns Bank of America-Merrill Lynch, sees potential for a market correction.

BofA-ML estimates headline profit growth for fiscal Q1 "is likely" to be to 13.7 per cent, but 9.7 per cent if excluding State Bank of India.

The investment bank says estimates sales growth of 16.7 per cent across its coverage universe, calls it the lowest sales growth in the last 10 quarters.

BofA-ML says SBI, ICICI Bank, HDFC Bank, Infosys and Tata Motors are expected to be the key contributors of growth.

However, Reliance Industries, Tata Steel, Hindalco Industries are going to drag down growth, BoA-ML forecasts.

Drilling down into specific forecasts, BoA-ML expects results buys to be ICICI Bank, HCL Tech, Apollo Tyres, and Jaiprakash Hydro Power.

However, among disappointments BoA-ML sees Reliance Industries, IDEA, and Larsen & Toubro.

(Reuters)