India, Oct. 11 -- Domestic small- and mid-cap companies are expected to outperform large-cap firms in earnings growth during the September quarter, supported by capital expenditure, modern manufacturing and artificial intelligence-led data centre investments, according to a research report by J.P. Morgan.

The brokerage expects earnings of Nifty 50 companies to grow 17 per cent year-on-year in the second quarter of the current financial year, while companies covered by the brokerage are projected to record 16 per cent growth in net profit.

The brokerage expects revenue growth across its covered companies to accelerate to 20 per cent in the September quarter from 19 per cent in the preceding quarter. However, rising raw material, fuel, fr...