The brokerage has increased its weight and remains ‘overweight’ on Banks, Cap Goods and Healthcare, and diversified financials (led by HDFC AMC). It is ‘equal weight’ on IT and ‘underweight’ on Auto, Metals, Cement, Consumer and Oil & Gas.
In the upcoming Q3 results, Motilal Oswal expects Nifty earnings to grow 10% YoY. Overall, earnings growth is likely to be driven again by domestic cyclicals, such as Auto and BFSI. Here s a list of 7 stocks that may post over 40% jump in their PAT for Q3.
Experts believe Q3 results may present a mixed performance with a slightly weaker overall performance. The IT sector may have muted earnings growth, while financials may face margin pressure but show strong top-line growth.