Livemint Interview: IT, Pharma to face headwinds, strong earnings growth seen in Financials, Auto, FMCG

Featured on Livemint: Indian stock market seems to be at relatively normal valuations at the Nifty level, said Deepak Shenoy, Founder and CEO of Capitalmind. In an interview with Livemint, Shenoy said he continues to invest in India’s domestic manufacturing industry, energy sector and in local consumption. Here are edited excerpts.

Q. As the earnings season kicks off, what are your expectations for corporate earnings in Q1? Which sectors do you anticipate will perform well?
A. We expect Nifty 50 aggregated EPS to report a high single digit on the back of strong earnings growth from sectors like Financials, Automobiles & FMCG sectors. On the other hand, IT & Pharma may continue to face headwinds however things are expected to bottom for these over the next couple of quarters.

Q. How do you analyse TCS's Q1 results and what is your outlook on the overall IT sector? Do you foresee growth bottoming out in the second half of the year?
A. The market commenced the Q1FY25 earnings season on a positive note, with TCS reporting robust figures: a 5.4% YoY revenue growth and an 8.7% profit growth. These results have provided a much-needed boost to the IT sector, where sentiment has been sluggish, and the IT sector valuations appear reasonable...

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