As India Inc prepares to report its April-June 2019 quarter numbers for financial year 2019-20 (Q1FY20), analysts at Morgan Stanley expect the financial sector to lead earnings growth. For the recently concluded quarter, they peg the earnings growth for the companies they cover (ex-financials) to fall 4 per cent year-on-year (YoY), but rise 29 per cent YoY if the oil PSUs are excluded from the aggregate.
“Financials sector is the biggest driver of the acceleration in earnings while the energy sector, particularly the oil marketing companies, are the biggest negative contributors to the earnings growth,” wrote Ridham Desai, their India equity