Sensex companies' profit to rise by 9.2 percent: BoFA

Bank of America Merrill Lynch expects Sensex companies' profit to rise 9.2 percent on consolidated basis in October-December and 11.1 percent on standalone basis, their weakest in the last eight quarters.

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Eight of the 30 index constituents are likely to see a decline in profit. The bank expects more earnings downgrades for FY13. "Similar to previous 2 quarters Sensex Earnings Before Interest, Tax , Depreciation and Amortization (EBIDTA) margins are expected to show a drop of 160 bps to 17.8 percent. This is largely led by energy (-380 bps on year), auto (-185 bps) and metals (-185 bps). IT is expected to show some margin gains (+125 bps) on rupee depreciation," the bank said in a note.

Infosys, ICICI, HDFC Bank, State Bank of India and ITC are expected to be the key contributors to growth. Tata Steel, Hindalco , Maruti, Tata Motors and Reliance Industries are expected to drag.

Reuters