Earnings preview: Experts expect more misses than hits in Q2; how can it impact market sentiment?
Earnings preview: Indian IT firms to report soft numbers in Q2FY24; revenue, profit likely to be muted Experts believe the second quarter earnings will be mostly stable with some hits and misses. Some sectors like IT may post softer numbers while some sectors such as BFSI (banking, financial services and insurance), auto and pharma may post healthy numbers.
Manish Chowdhury, the head of research at StoxBox expects the second quarter results to be mostly stable, with few pockets likely doing well. "Our focus in these results would be on the outlook for the second half of the year, especially considering the recent strength in crude oil prices, patchy monsoon, depreciation in rupee and persistent global uncertainties," said Chowdhury.
"We would closely watch the mid and small-cap companies to get a sense of the valuation premium can sustain over the next few quarters," Chowdhury said. Also Read: Stocks to buy this week: L&T, Exide, Aurobindo Pharma, BHEL among 12 technical picks; do you own any? Chowdhury believes the automobile and pharma space may post a good set of numbers on the back of strong demand and execution ahead of the festive season and easing pricing pressure in the US generics pharma space.
He believes that the banking space may see some NIM (net interest margin) compression this quarter due to re-pricing on the liability side, with public sector space looking more comfortable than the private banking names. Also Read: 'Valuations of smallcaps ahead of fundamentals; tough to predict RBI rate cut' Sonam Srivastava, founder and fund manager at Wright Research, PMS believes the banking sector, which has traditionally been a strong performer, might see its growth showing signs of moderation this time around.
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