Earnings Surprise Detector

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Quick Reference

Purpose Detect and analyze earnings surprises to identify trading opportunities from post-earnings price movements
Core Function Compares actual earnings results against consensus estimates, calculates surprise magnitude, and generates signals based on historical post-earnings drift patterns

India-Specific Notes

Indian Earnings Calendar

Peak Earnings Weeks Most Nifty 50 companies report in concentrated periods • Usually 3rd and 4th week of reporting window • Heightened volatility during peak weeks

Key Bellwether Stocks

It Sector TCS and Infosys typically report first • Sets tone for entire IT sector
Banking Sector High market impact due to weight in indices
Sector Bellwethers Maruti, M&M, Tata Motors • HUL, ITC, Nestle • Sun Pharma, Dr Reddy's, Cipla • Tata Steel, JSW Steel, Hindalco

Indian Earnings Metrics

Primary Metrics Earnings Per Share • Profit After Tax • Total revenue/sales • Operating profit before interest, tax, depreciation
Guidance Importance Revenue growth guidance critical • Credit growth and asset quality outlook • Volume growth and rural recovery

Estimate Sources India

Bloomberg Bloomberg consensus estimates
Reuters Refinitiv I/B/E/S estimates
Brokerages ICICI Securities • HDFC Securities • Kotak Securities • Motilal Oswal
Aggregators Moneycontrol • Screener.in • Trendlyne
Challenge Less analyst coverage for mid/small caps

Typical Market Reactions

Large Cap Beats 5-15% beat • 2-5% move • 1-3 days of drift
Large Cap Misses 5-15% miss • 3-8% decline • Can persist longer than beats
Mid Small Cap Higher (5-20% moves common) • Can exaggerate moves
Guidance Impact Often more important than current quarter beat • Can overwhelm a beat

Earnings Timing India

Announcement Timing Most results announced after 3:30 PM • Some announce before 9:15 AM (next day impact) • Rare, but possible
Board Meeting Disclosure Companies inform exchanges about board meeting dates • Allows traders to know when results are coming • NSE/BSE corporate announcements
Conference Calls Usually same day evening or next day • Management commentary often more impactful than numbers

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