India Equity Strategy:2Q Earnings,Slightly Lower Thus Far;Financials Key Drag

BSE-100 earnings growth of c2% thus far in 2Q — 2Q earnings growth for BSE-100 (32/100 companies reported; ~43% weight) is tracking at c2% YoY, marginallylower than Citi estimates for this set of companies (c3%, see Citi 2Q Preview). Weexpect Sensex/NIFTY earnings growth of 12%/14% in FY17E aided by: a)consumption uptick (monsoon, pay commission); b) low-base in 2H. There aredrivers for medium-term optimism