Slew of domestic quarterly earnings releases by firms including Power Grid, Titan Company and Gail (India) and several AGMs are expected to focus investors attention on corporate earnings this week. Despite foreign institutional inflows slowing down after a strong start to the month, the overall trajectory of the Indian stock market remains positive, said Shibani Sircar Kurian, senior EVP and head of equity research at Kotak Mahindra Asset Management, although the market is consolidating after a strong recent rally.
“As of now, the earnings season has been panning out pretty much in line with estimates. Financials continue to show fairly strong numbers, especially some of the private sector banks which have reported numbers so far. Overall, it is pretty much a good set of numbers. The IT sector has seen a muted set of numbers but that was again more or less in line with estimates.”
And therefore, that is why you are starting to see numbers in terms of the deal wins remaining largely intact. Near term, of course, even in the next quarter, we will possibly have to contend with muted growth outlook. And it is possible maybe towards the second half of the year, the expectation at this point in time is that we will start seeing possibly some improvement in terms of the revenue momentum.
When you look at the entire auto and auto ancillary pack one, as you correctly pointed out, that with input costs coming off there is that margin tailwind which is possibly known but as you start seeing that in terms of numbers that will start getting built in.
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