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Monday, December 23, 2024 | 01:27 PM ISTEN Hindi

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Nifty FY22 EPS set to surge between 10% and 30% despite economic shock

The brokerage highlights how the share of Nifty companies' profit in GDP and GVA (gross added value) has been meagre and falling. From a share of 2.8 per cent of GDP, it is now at 2 per cent

Traders monitor BSE index at a brokerage firm, as the Sensex goes down, in Mumbai | PTI
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The brokerage says one should not look at Nifty stocks to take cues on economic activities in the country

Samie Modak Mumbai
Nifty earnings are expected to grow anywhere between 10 per cent and 30 per cent in the 12-months ending March 2022 (FY22), even as the GDP growth rate is likely to nosedive. So, are equity analysts disjointed from the economic realities? Not actually. Analysis by Emkay Research shows there is a “tenuous link” between Nifty earnings growth and GDP. Hence, it is not far-fetched for the Nifty pack to post double-digit earnings growth in FY22 even as the economy would still be recovering from the pandemic shock. The brokerage is estimating Nifty earnings per share to be Rs 645 in

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