“In the current quarter, earnings will surprise people,” says Nischal Maheshwari of Edelweiss Securities on CNBC-TV18’s special show Quarter Se Quarter Tak. Topline and bottomline both are expected to imprive by 6-7 percent after 6-7 flat quarters, he adds.
Prakash Diwan doesn’t see many changes in earnings from the last quarter. However, he says that if earnings disappoint, market could be on its way to correction. This will be a buy on dips opportunity.
Maheshwari expects pharmaceutical sector to see muted growth. Among pharma, focus needs to be on domestic companies, he says adding that FMCG will see 4-5 percent growth in topline this time around.
Consolidation has set in product portfolio for big pharma companies, Diwan says. Mid-cap companies like Glenmark and Cipla are expected to perform better. However, the stress in the sector is expected to continue.
Edelweiss is positive on commercial vehicles (CV) segment in the auto sector. CVs, which have been muted, are likely to recover from fourth quarter onwards.
Transcript to follow..