According to Sanjiv Bhasin of IIFL there is a lot of pessimism around the third quarter earnings but he expects banks to be in a sweet spot.
With the third quarter earnings season already upon us, CNBC-TV18 in a special show 'Quarter Se Quarter Tak’ spoke to eminent experts to get their views on what to expect from various sectors this quarter post demonetisation, and to know which sectors will face the maximum brunt and which are likely to survive the impact.
Experts also analyse if there is a risk of further earnings downgrades.
According to Sanjiv Bhasin of IIFL there is a lot of pessimism around the third quarter earnings but he expects the banks to be in a sweet spot. He is bullish on PSU banks, especially SBI and Bank of Baroda. From the private sector space, ICICI Bank will outperform, says Bhasin.
Dhananjay Sinha Emkay Global Financial Services too expects moderate growth for most capital goods companies in the third quarter. Demonetisation, he says will impact the topline of companies.
From the auto space, the two-wheelers will bear the brunt of demonetisation while commercial vehicle players like Ashok Leyland and Mahindra and Mahindra will do well, says Sinha. From the FMCG space, he is bullish on the Godrej Consumer and Britannia and from the paint pack has a positive view on Asian Paints and Berger Paints.
Meanwhile, Bhasin expects deterioration in Infosys earnings in Q3. Corporate spending in US, Trump policies, H1B Visa issues will be the key issues to watch out for Indian tech companies.
For more on their views on earnings, watch video