Reuters Market Eye - Nomura says earnings expectations have been a key factor in the performance of Indian stocks this year, unlike last year when the rally was driven by a contraction in global risk premiums and improved sentiment from government reforms.
Data for NSE stocks reveal that more than half of the difference between individual stock price movements in 2013 can be attributed to consensus earnings changes over the same period, the note says, compared with less than a tenth last year.
Nomura adds NSE stocks that have underperformed this year even though their earnings have not been downgraded are: Reliance Industries Ltd
Others in the same category include ICICI Bank Ltd, Axis Bank Ltd, and Maruti Suzuki India Ltd
However, stocks with "excessive outperformance" are Tata Consultancy Services Ltd
Meanwhile, the top stocks with "excessive underperformance" are Hindalco Industries
(Reporting by Subhadip Sircar)