September quarter may be a strong quarter but Nifty profitability may slip
September quarter results started with some strong commentary from the management of India Inc. which helped the bullish sentiment. September quarter could well turn out to be a strong quarter but Nifty profitability may slip, Hemang Jani, Head – Equity Strategy, Broking & Distribution, Motilal Oswal Financial Services Ltd, said in The Market Podcast with Moneycontrol.
“We expect the September quarter to be strong and for Nifty50 we expect a 5-7 PAT decline. What is important to note is that the commentary has been strong especially from sectors like a two-wheeler, steel, Cement, paint companies, and HFCs,” he said.
Jain further added that many companies have suggested that they have reached growth rates of pre-COVID levels which is comforting. He expects upgrades to come through in sectors like metals, cement private banks, pharma, and IT.
Downgrades or pressure could be seen in sectors like auto, capital goods, oil & gas, PSU Banks and NBFCs.
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