Which sectors are expected to perform well in Q1 earnings season?

Financials, Automobiles, and FMCG sectors are anticipated to deliver strong earnings growth, driving the Nifty 50 aggregated EPS to a high single-digit increase. IT and Pharma may face headwinds, though these sectors are expected to bottom out in the next few quarters.

What is the outlook for the IT sector based on TCS's Q1 results?

TCS's Q1 results showed robust performance with 5.4% YoY revenue growth and 8.7% profit growth, boosting the IT sector's sentiment. While valuations appear reasonable, the sector may still face challenges, with growth potentially bottoming out in the second half of the year.

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

Indian stock market seems to be at relatively normal valuations at the Nifty level, said Deepak Shenoy, Founder and CEO of Capitalmind.

15 Jul 2024CM Team1 min read

Quick Facts

Which sectors are expected to perform well in Q1 earnings season?: Financials, Automobiles, and FMCG sectors are anticipated to deliver strong earnings growth, driving the Nifty 50 aggregated EPS to a high single-digit increase. IT and Pharma may face headwinds, though these sectors are expected to bottom out in the next few quarters.
What is the outlook for the IT sector based on TCS's Q1 results?: TCS's Q1 results showed robust performance with 5.4% YoY revenue growth and 8.7% profit growth, boosting the IT sector's sentiment. While valuations appear reasonable, the sector may still face challenges, with growth potentially bottoming out in the second half of the year.

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…

(…read the rest of the article in Livemint)