Elevated valuations and the likelihood of further earnings downgrades remain key risks for the markets, said Kotak Securities
Earnings downgrades in the last two quarters have been a function of margin compression. In the next few quarters, there is a potential risk of earnings downgrades due to demand destruction
Edelweiss slashed earnings by 9–18 percent for stocks in their coverage. It remains positive on Amber Enterprises which was recently added to the model portfolio along with KEI Industries, and Voltas.
Nandan Chakraborty of Axis Capital is bullish on the market over the next six months on expectations of economic recovery. However, he doesn't see bank recapitalisation anytime soon.
Market Analyst, Sangeeta Purushottam is hopeful on the budget, saying that it represents ‘best-case scenario’.