Pawan Parakh on 4 sectors that promise very high earnings in coming quarters
Pawan Parakh, Fund Manager, Geojit Financial Services, says the earning season, which is about to begin in the next 7-10 days, will see a lot of consumer companies giving out better outlook for Q3 and Q4 and that will set the tone for this sector. Apart from the consumer sector, another sector that investors should look into is sectors wherein there is very high earnings visibility. Power and capital goods is one such sector. Apart from that, he also finds pharma and real estate very interesting.
Is anything looking interesting in the market, both in terms of values and earnings visibility, that you would recommend buying should the market fall further?
Pawan Parakh: It is a tricky market, but honestly speaking, I am in the camp that believes that it is good to see some correction after all. Honestly, we are in the midst of a rally wherein clearly we can see some transition happening. So, in the last one or two months, we see that the rally is moving more from BFSI or auto names into consumer and consumer discretionary related sectors and we think this trend is here to continue as we just enter the festive season.
I want to believe that maybe Q2 in that sense is a soft quarter, but in the earning season, which is about to begin in the next 7-10 days, you will see a lot of these consumer companies giving out better outlook for Q3 and Q4 and that will actually set the tone for this sector. Apart from the consumer sector, another sector which investors should look into is obviously sectors wherein there is very high
