"Mirroring the previous two quarters, the market is expecting to witness another quarter of weak earnings season, reinforcing our view that earnings recovery will be slow in near-term," the brokerage said in a report.
"Headline Sensex profit growth is expected to be mere 0.3 per cent on a consolidated basis. Excluding financials, aggregate profit is expected to fall by 4.4 per cent," the report noted.
It also observed that "aggregate sales for Sensex companies is expected to contract for the third consecutive quarter at -2.8 per cent year-on-year".
According to the report, Sensex growth is expected to be largely contributed by banks.
"Among other Sensex companies, Cipla, BHEL, ONGC, HDFC Bank and Bharti are expected to be the key growth drivers.
On the other hand, Tata Steel, GAIL, Sun Pharma and L&T are expected to drag down growth," the report said.