It was a choppy session for the market on the last day of earnings. Both the benchmark indices ended on a flat note. The midcaps underperformed for the second day but telecom stocks provided a silver lining.
The Sensex was down 12.31 points at 28339.31, and the Nifty was down 12.75 points at 8792.30.
Rajesh Kothari Managing Director AlfAccurate Advisors believes the earnings growth for the market will be witnessed from the second half onwards, while the first half will be a low single-digit number. Fourth quarter earnings are expected to be subdued with some bit of improvement in first quarter of next fiscal.
Moreover, with the interest rate outlook stable for the time being and no cut expected, the capital expenditure by corporates and industrials will be postponed but consumption theme will continue to remains solid for the next two-three years. So, one should look at the consumer space which is expected to see 18-20 percent earnings growth on a compounded basis, believes Kothari.
Sector specific, Ambareesh Baliga believes affordable housing is a theme to look at, especially after government’s focus on it in the Budget. Stocks like Godrej Properties, Puravankara, Sobha etc will do well.
SP Tulsian of sptulisan.com too is upbeat on the housing finance and likes LIC housing, Can Fin Homes, Dewan Housing over plays like PNB Housing.
PNB Housing post listing has become a momentum play and valuations there too look stretched