PNB fraud, SBI result: Why good earning season may not boost Indian stocks

Earnings at more than two-third of Nifty's 50 companies exceeded or matched analysts' estimates

An otherwise strong earnings season for India’s companies is proving just not good enough for some, after a surprise loss by the country’s biggest bank renewed worries over credit quality.

State Bank of India’s December-quarter results spurred Motilal Oswal Securities Ltd. to pare its earnings per share estimate for NSE Nifty 50 Index firms by 3 per cent for the current fiscal and by 0.6 per cent for the financial year starting April 1.

“After beginning on a strong note, the season lost its sheen toward the end,” analysts led by Gautam Duggad wrote in a note. “The miss at