"We expect a continuation in earnings turnaround...This will be the fourth straight quarter of double-digit growth in key metrics of Sensex, underscoring our positive outlook on Indian equities," it said in a note.
The brokerage said it expects the growth momentum to continue for some more time due to enabling decisions by the newly formed government.
"We believe that the new government will walk the talk on addressing economic imbalances, which should in turn lay the foundation for structurally high earnings growth," it said.
The markets have been on an upswing for over three quarters now, ever since expectations of a pro-reform dispensation led by the BJP's Narendra Modi started. Formation of the Modi government and the initial decisions pointing to a commitment towards reforms have been welcomed by investors.
DB said the 30 companies that form the benchmark Sensex will post a 15% growth in revenue and 17% surge each in both pre-tax and post-tax profits.
During the quarter, companies in the telecom, oil and gas, information technology services, auto and fast moving consumer goods are expected to report better numbers, it said, adding that utilities, metals, banks and capital goods will be the "laggards".
Homegrown telecom major Bharti will be driving the telecom sector with an estimated 171% jump in earnings; while in the auto sector, JLR's performance is again expected to drive Tata Motors' earnings up by 109%, it said.
In oil and gas, state-run ONGC will lead with a 55% surge in earnings, followed by GAIL which is estimated to report a 36% jump, it said, adding that Mukesh Ambani-led Reliance Industries' (RIL) earnings are expected to remain flat due to dip in petrochemical business margins and the lower production in exploration and production vertical.
Pick up in demand in the west will lead to better performance by the information technology sector, it said, adding that TCS and Wipro will lead the way.