Indian companies are expected to post faster profit growth in the September quarter, with Nifty 50 firms’ net profit forecast to rise about 20 percent year-on-year on average, according to estimates from five brokerages compiled by Reuters.

In the April-June quarter, profit growth hit a 10-quarter high of 18 percent after three quarters of low single-digit growth. Motilal Oswal is the most optimistic, forecasting a 27 percent jump in net profit, which would be the fastest in 17 quarters. PhillipCapital expects a more modest 13 percent rise.

Analysts cite resilient domestic demand, early festive inventory build-up and favourable commodity-linked pricing as supports for earnings. Tata Consultancy Services will kick off the earnings season later on Thursday.

The forecasts come amid headwinds: foreign investors have pulled out of Indian stocks at a record pace, pushing the Nifty towards its worst year in 15 years, while the weakest monsoon in a decade has raised rural demand concerns.