India sees Asia’s biggest earnings downgrades

Indian companies have seen the steepest earnings downgrades in Asia, with analysts slashing forecasts as steep US tariffs heighten risks to growth even if proposed domestic tax cuts help cushion the impact.

- PATTURAJA MURUGABOOPATHY JASPREET KALRA

According to LSEG IBES data, forward 12-month earnings estimates for India’s large and mid-cap firms have been cut by 1.2% in the past two weeks, the sharpest in Asia.

The cuts follow a lacklustre season of quarterly earnings reports extending a bout of weakness among listed firms that kicked off last year and has hurt benchmark equity indexes.

India’s economy is largely domestic, and firms that are part of the Nifty 50 index earn only 9% of revenue from the US, but President Donald Trump's tariff hike to as high as 50% on exports to the world’s largest economy presents a risk to economic growth.