Monsoon, rural eco dragging earnings down:DHFL Pramerica MF

Corporate earnings have been impacted by slowdown in rural economy, lackluster monsoon and competition from online retailers, BP Singh of DHFL Pramerica Mutual Fund told CNBC-TV18. Singh expects the non-dollar exposure companies to come out with weak set of second quarter earnings. Currently, steel and commodity companies are suffering, he adds.Pharmaceutical companies need to be looked at from yearly view and on basis of an Abbreviated New Drug Application (ANDA) approvals rather from quarter-on-quarter results, Singh said. Singh is positive on the top five pharmaceutical companies and expects good earning numbers from them. In the financial space, non-performing asset (NPA) is improving in the infrastructure segment, but technology still lags the banks down, Singh said. He expects the cost of funds to rise in banking space and said public sector banks could perform better than established private banks.