According to Bloomberg data, over 18 Nifty 50 businesses missed estimates for the quarter ending September this year, while 15 outperformed them.

Analysts have upgraded 19 firms and downgraded 14, according to the September quarter data.

The data excludes Bajaj Finserv because there is no coverage of its revenue and profit characteristics. The results of the remaining Nifty 50 have not yet been announced.

The earnings of the 34 Nifty 50 businesses that have reported results as of October have remained flat year on year, compared to an expected positive growth rate of 2% previous year, according to a post-results research by brokerage firm Motilal Oswal Financial Services.

Stagnation was mostly caused by ICICI Bank, Axis Bank, Bharti Airtel, NTPC, and HDFC Bank.

Bharat Petroleum Corporation Ltd (BPCL), JSW Steel, Coal India, IndusInd Bank, Reliance Industries, and Ultratech Cement all had a negative impact on the Nifty results. According to the research, nine of the companies reported profits that were lower than expected, ten exceeded forecasts, and 15 met expectations.

According to the research, the 34 Nifty stocks saw a 5% year-on-year increase in sales and a 1% increase in Ebitda (earnings before interest, tax, depreciation, and amortization), while profit before tax (PBT) and profit after tax (PAT) growth remained nil. Last year, sales growth was anticipated to be 5%, EBITDA growth was 4%, and PBT and PAT growth was 2%.

Ten of these companies outperformed Motilal Oswal's PAT predictions, while nine fell short. In terms of Ebitda, eight exceeded expectations, while seven fell short.

ICICI Bank, Wipro, HCL Technologies, Bharat Electronics, Tech Mahindra, Maruti Suzuki, L&T, Cipla, Tata Consumer, and JSW Steel outperformed the Nifty's earnings predictions. However, BPCL, Coal India, IndusInd Bank, Ultratech Cement, Nestle, Kotak Mahindra Bank, NTPC, and Bharti Airtel did not make the cut.

Apart from the 34 firms, as of the end of October, 166 companies covered by Motilal Oswal have announced their September quarter results. These companies collectively account for 73% of the expected PAT for the study and 74% of the Nifty 50 companies. These firms account for 50% of India's market capitalization and 81% of the Nifty.

According to a Motilal Oswal research for a larger group, the corporate earnings scorecard at the end of the September quarter has revealed weakness, albeit results outside the commodities industry have typically met expectations. The earnings disparity has widened, with only 62% of the coverage universe meeting or exceeding profit targets. Consumption has been identified as a problematic area, while certain areas of the banking, financial services, and insurance industries are facing asset-quality issues.
 
The paper indicated that the Nifty FY25 EPS (earnings per share) had been slashed by another 1%, following a previous 4% fall in the Motilal Oswal forecast. Over the last six months, the aggregate Nifty EPS has been lowered by 7%, bringing the predicted earnings growth for FY25 to just 5%, the worst performance since FY20.

The Nifty is currently trading at a 12-month future price-earnings ratio (P/E) of 20.7x, which is in line with its long-term average of 20.5x.

The P/E ratio is used to determine the relative value of a company's shares. It is determined by dividing the current market price per share by the earnings per share (EPS). The ratio helps investors determine if a firm is overvalued, undervalued, or appropriately priced in relation to its earnings.

Despite a recent 7-8 percent drop from their highs, the broader markets remain overvalued, with the NSE Midcap 100 trading at a forward P/E ratio of 30x.