The annual earnings performance of a company reflect numerous events. Some of these events affect almost all the companies in the economy whereas some are specific to the industry in which the company is operating. The objective of the present paper is to discern and quantify the influences arising primarily because of economy-wide factors. They are referred as market-wide commonalities in corporate earnings. This has been done by using the market model framework. The study uses a sample of 182 companies from the population of companies listed on the Bombay Stock Exchange The earnings and book rate of return series of 17 years for each company is used to construct the market index. The accounting earnings beta estimates are obtained for each company by using OLS method. The market model has been tested in its various forms. The model consistent with OLS specification has been considered to be more relevant in interpreting the results. The hypothesis that there is a systematic index does not find empirical support. The explanatory power of the models consistent with OLS assumptions has been found to be very low.