homeearnings NewsFirst quarter earnings: Many sectors could disappoint; auto cos could see margin downgrades, says Mahesh Patil
First quarter earnings: Many sectors could disappoint; auto cos could see margin downgrades, says Mahesh Patil
Speaking to CNBC-TV18, Mahesh Patil of Aditya Birla Sun Life AMC has said that there may be some pain in store in the near term for quite a few sectors because of the Russia-Ukraine war and the overall geopolitical situation around the globe.
The first-quarter earnings are around the corner and the numbers shall start coming in from the second week of April. Speaking to CNBC-TV18, Mahesh Patil of Aditya Birla Sun Life AMC said that there may be some pain in store in the near term because of the overall geopolitical situation around the globe.
"There are quite a few sectors where earnings could be a disappointment in Q1FY23. The market is looking expensive from the near-term point of view," he said.
Speaking sector-specific, Patil warned that the near-term would hold ain for the auto companies.
"The auto sector has been hit on the demand and supply side. Expect the auto sector to do well once demand recovers," he assessed.
However, for the first quarter, auto listed players can see margin downgrades, he warned.
Also read | Higher input costs adding pressure on earnings; auto sector still on a bumpy road: Kotak Mahindra AMC
Among sectors to watch out for, Patil is constructive om banking.
"The banking sector offers decent growth visibility and thus we remain constructive on banks. The corporate NPA (non-performing assets) cycle is at its bottom. Expect most large PSU banks to do well," he said.
Meanwhile, the Indian equity benchmark indices, BSE Sensex and NSE Nifty50 started Friday's session lower dragged by financial and auto stocks, starting the first day of the new financial year on a negative note.
For all the market action of the day (April 1), click here
(Edited by : Abhishek Jha)
First Published: Apr 1, 2022 10:27 AM IST
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