Mumbai, July 10 -- Corporate earnings estimates, which have already taken a knock this year, may be cut further, analysts said, as disruptions caused by the covid-19 outbreak continue to impact demand and corporate balance sheets. Weak earnings growth and high valuations could also slow the tearing rally in stock markets, which have gained more than 40% from their March lows.
Nifty consensus earnings estimates for FY21 and FY22 have been slashed by 13.44% and 22.06%, respectively, since the beginning of FY21, according to Bloomberg estimates.
There is a risk of further cuts, according to analysts at Nomura. "Nifty consensus earnings estimates for FY21 and FY22 are down 27% and 16%, respectively, since the start of FY20... We believe the m...