Corporate earnings rebound in December quarter fails to lift Nifty EPS

Corporate results for the December quarter (Q3) have, so far, surpassed expectations with many big companies reporting high double-digit growth in earnings. 

This buoyancy has, however, done little to lift the underlying earnings per share (EPS) of the benchmark indices or lower their valuation. 

The trailing 12-month EPS of the Nifty50 has risen just 2.8 per cent sequentially during the quarter.  Further, earnings are still down 14.5 per cent year-on-year (YoY). The index closed on Thursday with trailing EPS of Rs 373.9, compared to Rs 363.7 as of end-September. The Nifty EPS stood at Rs 437 a year ago. 

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