BofA cuts Indian cos' earnings estimates

Despite rising optimism, Amish Shah, head of India research at BofA Global Research, remains unconvinced by the India out-performance story, expecting the country to lag its emerging-market (EM) peers and cutting his earnings growth estimates for Indian companies for the second time in a row.

- Dipti Sharma

Amish Shah, head of India research at BofA Global Research.

In an interview with Mint, he said crude prices have risen and that some energy infrastructure assets in West Asia have been affected by the war. Even if tensions ease, supplies are unlikely to return to prewar levels soon, keeping prices elevated for longer. This is also expected to affect growth and keep commodity prices, including aluminium and copper, elevated.

Brent crude oil prices have shot up by over 42% since the war broke out at the end of February.

Given this, he saw little point in waiting for May earnings announcements and said the brokerage is instead building in more realistic estimates now to arrive at revised price targets.

Amish Shah, head of India research at BofA Global Research.