Moneycontrol Pro Panorama | Will September earnings catch up with valuations?

Representative image

Dear Reader,

The Panorama newsletter is sent to Moneycontrol Pro subscribers on market days. It offers easy access to stories published on Moneycontrol Pro and gives a little extra by setting out a context or an event or trend that investors should keep track of.

The mood on the Street is upbeat. A positive note struck by results of top IT companies has set the ball rolling for the September quarter earnings season. Moneycontrol Pro’s research team has put together a detailed analysis ofWipro, Infosys and Mindtree results. Brokerages concur on strong earnings momentum prevailing in the quarter, although it comes off a low year-ago base. The good news is that several manufacturing and core sectors are also set to impress investors, in spite of supply and logistics challenges. 

That metals stocks and commodity plays could post stellar growth on the back of higher revenue is a no-brainer, given that commodity prices are going through the roof.  Following closely would be banking and financials, whose performance would ride on higher economic activity and lower provisioning. Textiles and real estate, driven by strong consumer appetite in the country, will contribute to earnings outperformance, even as pharma companies continue to gain from a sound outlook in the Indian market.

Indeed, global agencies such as the International Monetary Fund have reaffirmed that a smart recovery is afoot in India.

But with markets on the boil and earnings playing catch-up with valuations, it may be prudent to err on the side of caution. Watch out for changes in these narratives: Supply chain issues, energy scarcity, rising inflation and signs of liquidity tightening measures taken by central banks the world over, including India. Therefore, management commentary on the challenges and the outlook ahead for companies will provide important inputs for investors.

Our research team has also written the following notes rich with investing insights:

Zee Entertainment: Should investors worry as high-decibel dispute goes on?

Is there more steam left in IDBI Bank’s rally?
GM Breweries Q2 FY22: Recovery gathers steam

What else are we reading today?

Is Facebook too big to change?

In discom energy audits, objective must override exercise

Chart of the Day | The house of debt is being set in order

Hopes and fears for the global COVID-19 recovery (Republished from the FT)

The real question about China for investors (Republished from the FT)

Technical Picks: HDFC Bank, Tata Consumer, SAIL and Federal Bank (These are published every trading day before markets open and can be read on the app)
Vatsala Kamat

Moneycontrol Pro