Mirroring the previous quarter, markets will likely witness another quarter of weak earnings season, reinforcing our view that earnings recovery will be slow and back ended.
FY 2015 SENSEX Earnings was expected to be Rs 1517 and has now been significantly downgraded to Rs 1,452. So also FY 2016 earnings have been revised downwards from 1824 to mere Rs 1,713.
The Index Appears will be Fully Valued at 27,408 taking into account FY16 earnings at 16x forward P/E. We expect SENSEX to be Range Bound between 26,000 to 30,000 for the rest of 2015.
