“If you strip out the earnings growth coming from some PSU banks, a large number of NBFCs and private sector banks have clearly disappointed. My understanding is that this industry is becoming highly competitive—a “red ocean”—making it very difficult for banks to sustain the kind of growth rates we were used to four or five … Read more
“On the banking side you are seeing a major reduction in funding cost and that should benefit both the NBFCs and the mid-sized banks as well. Till now really the play was only in the large banks but you should see broader participation in the growth this year,” says Ashish Gupta, CIO, Axis Mutual Fund.But … Read more
“For now, we expect the market to remain in a narrow range. It has become more stock-specific. Clearly, companies that report better-than-expected earnings are being rewarded, while those that disappoint are getting punished. We’re now in a phase where macro factors are subdued, and it’s the micro factors that will drive the markets from here,” … Read more
“We have seen a fair bit of shaving on the Nifty 50 earnings and so, the earnings expectations going into FY26 are more muted than what they were going into FY25, that may be some kind of a comfort in terms of for the downside for the earnings expectations. The pace of earnings downgrade may … Read more
JM Financial has initiated coverage on Kalyan Jewellers with a ‘buy’ rating and a target price of Rs 700 per share, citing the company’s strong store expansion strategy, improving financial metrics and favourable structural tailwinds in India’s jewellery industry. The target implies a potential upside of 19.4% from Monday’s closing price. The brokerage values Kalyan … Read more
“So, we are also expecting it to go up 10%, 12%, 15% over a year and therefore, maybe this is one of the reasons that it would not go up more and also it should not go up more because the earnings growth is not that great, but only thing is if it stops falling … Read more
The stock market’s focus has now shifted to FY26 earnings, which are expected to grow by 12-13%, following a 5-6% earnings downgrade over the past six months, says Srinivas Rao Ravuri, Chief Investment Officer, Bajaj Allianz Life Insurance. While a 12-13% earnings growth rate may not seem particularly strong at first glance, we believe it … Read more
Believing that the current expensive valuations pose a downside risk to Bajaj Housing Finance shares, domestic brokerage firm Kotak Institutional Equities has initiated coverage on the stock with a ‘sell’ rating and a target price of Rs 100. This signals a potential downside of 21% in the stock. “Bajaj Housing Finance trades rich (4.7X book … Read more
“Investors should pay attention to relative valuations, interest rates, trends in NPAs, and other macro factors to see when the tide may be turning,” says Anil Rego, MD & CIO, Right Horizons PMS.In an interview with ETMarkets, Rego said: “Earnings have been strong, and while absolute valuations may be high, in relative terms, we are … Read more
ET Intelligence Group: Foreign investors are increasingly favouring India’s discretionary consumption and capital expenditure sectors, ramping up equity allocations in Asia’s third-largest economy following a brief pause. The capital goods sector saw the largest increase in weightage among major sectors, contributing 131 basis points to reach 5.71%. The auto sector’s portfolio weight rose by 115 … Read more