Credit Suisse cuts FY16 Nifty EPS estimates by 2%

Neelkanth Mishra, Credit Suisse said FY16/17 Nifty EPS estimates have been cut by 2 percent/1.3 percent respectively, but with bulk of the cuts from energy (Cairn), industrials (BHEL) & cement, the pace of cuts should ease in coming quarters.

According to him, IT cuts are unlikely to repeat. “2H of the earnings season may be weaker as PSU banks, utilities & metals companies report. FY15 Nifty EPS may settle at 6 percent YoY (against 8 percent now). However, later reporting companies may comment on revival in April-May operations,” he added.

According to Mishra, the April sell-off has been broad-based. He stays overweight on private banks, consumption, cement & IT.

Meanwhile, Sunil Garg, JPMorgan said, “Long used to sideways action, many Asian markets are displaying clear trends & at this stage we are seeing limited reversal signs despite spectacular gains in markets such as China.”

“While there is a natural bias to look for reversals/ profit-taking opportunities following recent gains, we believe "staying in a trend for as long as possible" is a proven profitable strategy. The downward trend is in place for markets like India & Indonesia,” he added.