On a YoY basis, the profitability of capital goods companies is expected to be flat, but softening commodity prices and operating leverage could lead to an improvement sequentially. The pack could witness moderate growth in net profit on a yearly basis, most analysts believe.
Healthy order books, price increases, and an uptick in demand are also likely to have driven growth.
The house is upbeat on the financials, capital goods and engineering spaces but bearish on consumer goods and pharma space, Anish Damania, CEO & Head-Institutional Equities, IDFC Securities.