India Consumer Earnings Key as Markets Hope for Demand Rebound

Asia’s earnings focus turns to India’s consumer sector, as investors look for signs that economic momentum is recovering after central bank rate reductions and income tax cuts take effect.

Efforts to shore up the Indian economy are under way as it gradually recovers after a consumption slowdown last year. The Reserve Bank of India has cut the key rate by a cumulative 100 basis points so far this cycle, with the governor in June declaring the battle against inflation had been won. The country’s two largest private sector lenders HDFC Bank Ltd. and ICICI Bank Ltd. both beat profit estimates on Saturday.