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BofA-ML sees 0.3 per cent Q1 profit growth in Sensex companies

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Press Trust of India Mumbai
Last Updated : Jul 07 2015 | 9:57 PM IST
Corporates are expected to report weak earnings for the third consecutive quarter in April-June period, Bank of America-Merrill Lynch (BofA-ML) said today.
"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".
"The only silver lining is that excluding the Tata Group's global subsidiaries, aggregate profit growth is expected to be marginally better at 4.4 per cent," the report added.
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.

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First Published: Jul 07 2015 | 9:57 PM IST

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