Business

IIE DIGITAL DESK : Indian stock market transitions into earnings mode, investor attention has sharply shifted toward corporate performance, with seasoned market expert Dipan Mehta expressing optimism for select sectors that are expected to deliver a strong quarterly show. With the Nifty and Sensex maintaining resilience despite global uncertainties, the upcoming financial results are anticipated to set the tone for market movement in the coming weeks.

Dipan Mehta, a well-regarded investor and director at Elixir Equities, shared his outlook for the earnings season, pointing to sectors such as banking, capital goods, and autos as likely outperformers. According to Mehta, the strong credit growth in the banking sector, combined with improved asset quality and robust net interest margins, could lead to impressive quarterly figures. He also expects capital goods companies to post healthy numbers, driven by government-led infrastructure spending and rising private sector investments.

The auto sector, which has witnessed steady sales growth and improved semiconductor availability, is also on Mehta’s radar. He believes that cost optimization, better product mix, and strong demand in both domestic and export markets will play a pivotal role in boosting profitability. On the other hand, he remains cautious about IT and FMCG sectors, where margin pressures and global demand concerns might lead to subdued earnings.

This earnings season is particularly significant as investors look for validation of the market’s recent rally. Positive surprises could provide further momentum, while any disappointments might lead to short-term volatility. With global cues remaining mixed and geopolitical tensions still looming, domestic earnings are expected to be a key driver of investor sentiment in the near term.