Analysts cautious on corporate earnings growth amid Covid-led lockdown

During the first wave, FY21 and FY22 Nifty earnings estimates, according to analysts at Jefferies, were cut by 33 per cent and 21 per cent respectively till September 2020

Analysts are becoming increasingly cautious and have started trimming their expectations of corporate earnings growth in FY22 amid the second wave of Covid infections, which have triggered lockdowns and mobility curbs in key cities of the country.
 
A prolonged and wider lockdown will have a more severe effect on earnings recovery, according to ratings agency Moody’s.
 
Largely regional and less stringent lockdowns have had a limited impact on economic activity, analysts say, but caution that if infections fail to decline to more manageable levels, lockdown may be prolonged and increase in scope, leading to a more severe effect