Earnings are expected to improve in the next two quarters, according to an expert interviewed by CNBC-TV18. The expert mentioned that the government's capital expenditure had been slow due to recent elections and monsoon conditions, but these issues have now been resolved.

The government has indicated that capital expenditure will resume, with only a slight underperformance expected for the fiscal year. Overall government spending is projected to exceed last year's figures. The expert also pointed out that certain stocks have experienced significant declines from their recent highs, along with a 10% correction in the benchmark index. The expert believes that this consolidation phase for these stocks is positive and suggests that the market is currently reflecting the performance of the last two quarters.

The expert also mentioned the impact of lower government expenditure due to elections and other factors, as well as the potential impact of a heat wave this season.