India Inc Q3 earnings to take demonetisation hit: Report

MUMBAI: Corporate profits for the third quarter will be adversely impacted by the Centre's move to demonetise Rs 500 and Rs 1,000 notes with sectors such as automobile, FMCG, retail, consumer durables expected to be hit, says a report.
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According to an analysis by domestic brokerage firm Motilal Oswal Securities, with low circulation of money, household consumption has taken a hit and caused business across sectors to decline in the range of 30-80 per cent within the first five days of the demonetisation move .   Future & Option Trading Tips 

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"Against the current backdrop, we expect October-December quarter earnings to be impacted the most," Motilal Oswal said in report titled 'Demonetisation: Feedback from the Ground Zero'.  Financial Astrology



Noting that with uncertainty surounding the duration of liquidity recalibration, it was difficult to quantify the earnings impact, the brokerage said, "post demonetisation, there were obvious downside risks to 2016-17 earnings estimates".   Astrology and Numerology Trading Tips



"We believe autos, FMCG, retail, consumer durables, mid-caps, cement, telecom and NBFCs could see earnings downgrades for 2016-17," it added.


According to information compiled by Motilal Oswal, consumers are prioritising replacement/withdrawal/deposit of cash in banks/ATMs and there has been a marked drop in footfalls in stores, malls, restaurants and showroom.
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