Look for cos with high earnings growth; like Eicher: JM Fin

Suhas Harinarayanan, Head of Research, JM Financial speaking from the sidelines of their conference said there are yet no signs of earnings support for the market. Most earnings expectations have been cut down to singe digits for the year. Earlier the expectations were that earnings would be around high-teens for FY16-17. Therefore, focus only on companies with strong earnings growth potential, he said.Moreover, with rural incomes still stagnant, it is unlikely for one to see meaningful recovery in rural demand for the near-term, said Harinarayanan.Sector specific, he would be more selective on PSU banks and from the two-wheeler space the house has Eicher Motors in their model portfolio with an eye on urban spending.For the entire interview, watch video.