As the financial year 2019 draws to a close, analysts have downgraded their earnings expectation for eight out of 10 sectors. Industrials and technology sectors have seen earnings upgrade of 11 per cent and 3 per cent, respectively, during the course of the financial year.
Downgrades have been led by communications at 24 per cent, materials at 19 per cent, healthcare at 18 per cent, energy at 16 per cent and consumer discretionary at 13.7 per cent.
Gautam Chhaochharia, Managing Director and Head of Research at UBS Securities, India, expects earnings to pick up over the next two years.
“The market is factoring in a big pickup in earnings cycle next year to year-and-a-half, which can theoretically support the current market valuations,” he told ETMarkets.com in an interview.
Top 5 Stock Upgrades
Top 5 Stock Downgrades
Anoop Bhaskar, Head of Equity at IDFC Asset Management, says while the underlying earnings story is improving (better revenue growth trends, corporate banks asset quality turning around, etc.), new risks to earnings areRead More – Source