The second quarter of the year saw Nifty companies reporting a 4 percent year-on-year profit growth, marking the first time since the pandemic that there has been two consecutive quarters of single-digit earnings growth.

This growth was primarily driven by SBI, Hindalco, ONGC, ICICI Bank, and Axis Bank, although it was offset by underperformance from BPCL, JSW Steel, Coal India, IndusInd Bank, and Reliance Industries.

The consumption sector has shown weakness, compounded by asset-quality stress in select BFSI segments, as noted by Motilal Oswal Financial Services.

Earnings projections for FY25 have faced downgrades, with a 1 percent reduction following a 4 percent cut during the Q2 preview.

Over the past six months, Nifty EPS has been revised downward by 7 percent, leading to a projected earnings growth of just 5 percent for FY25, the weakest since FY20.

Bharti Airtel received a remarkable FY25 earnings upgrade of 16.3 percent, followed by Tata Motors at 11.6 percent, Tech Mahindra at 8.8 percent, and Hindalco at 8.6 percent.

On the other hand, significant downgrades were seen for BPCL at 34.3 percent, IndusInd Bank at 16.7 percent, UltraTech Cement at 15.5 percent, Asian Paints at 14 percent, and Trent at 12.1 percent.