ETMarkets Smart Talk- We expect the Nifty50 earnings growth for FY24 and FY25 to be close to 15%: Nishit Master

economictimes.indiatimes.com:

“We expect the Nifty50 earnings growth for FY24 and FY25 to be close to 15%, and thus, it appears that there is some room for the markets to generate decent returns over the next few years,” says Nishit Master, Portfolio Manager, Axis Securities PMS. In an interview with ETMarkets, Master said: “We believe sectors like NBFCs, Capital Goods, Consumer Discretionary and Auto would outperform the broader markets in 2H2023 as we expect their growth momentum to either improve or remain strong in the coming quarters” Edited excerpts: What is your call on markets after the recent run-up to record highs? Until the end of FY23, markets had underperformed for a couple of years, while earnings growth for markets during this time was in the mid-teens. Thus, the recent movement in the markets, to a great extent, is a catch-up rally.

Hence, the market momentum can continue in 2H2023 as long as the global economy does not face any significant financial or geopolitical headwinds. We expect the Nifty50 earnings growth for FY24 and FY25 to be close to 15%, and thus, it appears that there is some room for the markets to generate decent returns over the next few years.Which sectors are likely to hog the limelight in 2H2023? We believe sectors like NBFCs, Capital Goods, Consumer Discretionary and Auto would outperform the broader markets in 2H2023 as we expect their growth momentum to either improve or remain strong in the coming quarters.