Positive impact of banks on Q4 earnings; high commodity prices a setback: Valentis Advisors' Jaipuria

Jyotivardhan Jaipuria of Valentis Advisors

The banking and commodity sectors weighed on Q4FY23 earnings in a big way, where banks had a positive impact while all-time high prices of global commodities impacted earning negatively, said Jyotivardhan Jaipuria, founder of Valentis Advisors in an interview to CNBCTV18.

While Q4 earnings were 'slightly better than expectations', Jaipuria expects a 10 to 12 percent earnings growth in FY24, adding that the given number will be positive in a global context amid concerns related to economic recession.

Talking about the pharma sector, he closely monitors some of the stocks in the US genomic space along with domestic pharma companies.

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Jaipuria  believes investing in railway and defence stocks will be a 'good bet' in the upcoming three to five years. "The defense companies in India are going to get much, much bigger than what they are today and they will probably all be double of size with a lot of new listings," he said

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He is also of the view that a lot of sectors underperformed in 2022 on the back of surging commodity prices worldwide. And now that the commodity prices have come down, the margins will probably expand substantially.