It is time for a reality check after the euphoric 34 per cent rise in stock markets over the past five weeks.
As Infosys flags off the March quarter earnings season on Wednesday, India Inc is expected to report one of its worst performances in recent years.
Sales for Indian companies are expected to be flat or even shrink a little for the March quarter as they fell prey to insipid demand, a cutback in capital spending and lower prices and realisations.
The numbers may show cost pressures have eased off a bit, thanks to the sharp fall in prices of crude oil and commodity inputs.
But companies are unlikely to have reaped the full benefits of lower input costs this quarter.
Interest costs, the key variable contributing to profit falls recently, are expected to remain high, as only select top-notch borrowers have benefited from recent interest rate cuts.
In this backdrop, market participants are forecasting a decline or a mode…