Quarterly earnings reports of major Indian corporates have continued to disappoint with NSE's Nifty 50 earnings touching a five-quarter low of Rs 400.69 a share in the January-March period, a Bloomberg report said. Data compiled by Bloomberg also showed that the difference between its estimates and actual earnings per share (EPS) has been in the range of 32 to 40 percent in the last three quarters.

According to its analysis, earnings growth are important to maintain a sustained rally in the stock markets especially at a time when temporary factors have caused lofty valuations of the equities despite the absence of any fundamental support.

Analysts feel that a fall in rural income, liquidity squeeze, volatility in oil prices, weakness in the rupee have been some of the main reasons for a shortfall in Nifty earnings.

Bloomberg has cut its estimates for the current as well as next financial year. For fiscal 2019-20, earnings estimates for Nifty 50 have been reduced by 1.6 percent since April and the estimates are down 1.9 percent for 2020-21.