I do not think that is correct, in case of the largest Index, i.e. Nifty. Nifty constituents had delivered on an unweighted basis negative trailing twelve month earnings growth as on June 2015. There have been recent replacements in Nifty that did not deliver, for instance United Spirits, but that was soon replaced by an older constituent that was brought back, Zee Enterprises. Again NMDC, a recent entry was replaced in Sept 2015.
In other words there seems to be a higher chance of a recent addition getting replaced whereas older new remain. The ones that got removed had poorer results than the incumbents. This would not have happened if the quality of earnings were improving.
Warm regards,
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