Sensex earnings likely to grow at 6% YoY in Q2: Enam
The focus will now also shift to earnings season. Sensex earnings are likely to grow at 6% (YoY) versus 13% in Q1, owing to the high subsidy burden on upstream oil companies, says Nandan Chakraborty of Enam.
October 11, 2012 / 08:45 IST
Here are experts equity calls for the day on how the markets are expected to trade:
Sakhti Siva, Credit Suisse: Indian investors are sticking with quality defensives, but adding some cyclicals and public sector banks. Our view though is to continue switching out of the expensive defensives, in particular ITC, TCS, Sun Pharma, HDFC Bank and Lupin, to cheap cyclicals like Tata Motors, Reliance Industries & Tata Steel. Bottoming in global growth, domestic policy reforms and potential RBI cut are catalysts for the switch.Nandan Chakraborty, Enam: Markets have rallied sharply in the last two weeks on the back of reform announcements. This is despite the fact that many of these recent measures will require Parliament nod, where the Congress does not have a majority. The focus will now also shift to earnings season. Sensex earnings are likely to grow at 6% (YoY) versus 13% in Q1, owing to the high subsidy burden on upstream oil companies. However, excluding oil, growth is seen at 13% versus 17% in Q1. Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
