Earnings recovery likely to be in FY16-end: IIFL

Prabodh Agarwal, IIFL feels going ahead, lower commodity prices, lower interest rates, and improving consumer sentiment should result in demand recovery. Earnings recovery is likely to be gradual and back-ended in FY16, he believes.

He said forecast of 21.5 percent PAT growth for the universe in FY16 may seem optimistic from the current low level.

"Envisage gradual EBITDA margin expansion in the consumer discretionary, energy, industrials, materials, and telecom sectors. Continue to favour private financials, consumer discretionary, industrials, IT and cement sectors," Agarwal added.