Earnings decline slows Nifty run after rallying nearly 50% from March lows

Index has rallied close to 50% from its March lows even as underlying EPS has fallen about 20%

The equity markets have hit a hard ceiling after bouncing nearly 50 per cent from the March 20 lows.

And the reason could be a steady decline in corporate earnings after they hit a high in the December quarter following the cut in corporate income tax.

From its lows in March this year to its high early this month, the benchmark Nifty50 index rallied nearly 52 per cent. That, however, coincided with a steady decline in the index’s underlying earnings per share (EPS) as corporate revenue contracted during the March and June quarters.

The index EPS, on a trailing 12-month basis, was down