Better pricing, inventory gains may see Q4 earnings better than expected: Satish Ramanathan, JM Financial
Subscribe to enjoy similar stories.Consensus earnings estimates for the fourth quarter of FY26 point to double digit growth, albeit at a lower level than the previous quarter due to the impact of the West Asia war and a high base effect, says Satish Ramanathan, chief investment officer-equity at JM Financial Asset Management Company in an interview. Leading companies may emerge better given superior pricing power.Asked whether it is time for foreign portfolio investors to return to Indian equity markets, Ramanathan reply was: “…we believe Indian equity markets are now reasonable as regards valuations and are poised to benefit from a diversified economy and domestic market.
We expect foreign investor sentiment to improve once oil prices settle down.” He manages some ₹9,800 crore equity assets under management at JM Financial AMC.Edited excerpts from the interview:In March, Indian equity markets declined nearly 11% on fears of the fallout from the Iran war. Concerns about oil and gas availability were elevated and prices spiked, leading to a weakness in the currency.
The subsequent news flow has been encouraging as tensions between US and Iran seem to have declined. However, we will need to assess markets and the impact on the economy on a periodic basis.India remains particularly vulnerable, as dollar remittances and energy dependency on the Middle East is high.
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