The ongoing earnings season for the September quarter has led to sharp earning downgrades for a clutch of Nifty companies. For example, Indian Oil Corporation
(IOC) and Dr Reddy's Labs have seen analysts cut their earnings estimates for 2019-2020 by 16 per cent and 11 per cent, respectively. In the case of Axis Bank and IndusInd Bank, the cut has been between 5 and 7 per cent. Among other Nifty companies, Zee Entertainment (ZEEL) has seen an earnings cut of over 8 per cent. However, some companies have also seen earning upgrades. JSW Steel has seen analysts raise earnings estimates by 30 per cent. Within the stocks covered by Motilal Oswal Financial Services, auto and metal sectors have seen 12-13 per cent earnings upgrade. Among auto stocks, Hero MotoCorp and Bajaj Auto have seen earning upgrades of 9 per cent and 7.5 per cent, respectively.