
Which sector could emerge as a winner this earning season? Amnish Aggarwal answers
, Head, Research,
Prabhudas Lilladher
, says the Q1 earning season has been largely disappointing, with only a few banks performing well. Demand trends and stress on MSMEs and unsecured loans are evident, impacting financial performance. Consumer companies are unlikely to beat estimates, leading to potential earnings cuts. While select capital goods and commodity companies show promise, financials are underperforming, keeping markets in a narrow range.
It's a very range-bound market; on the upper end we have been at that 25,200 mark and the lower end is where we shut shop on Friday. Pretty uncertain times. Let's talk about the softness in earnings which is playing out. Other than ICICI Bank, I really do not see any big numbers in largecaps so far and of course, a few midcaps here and there. What do you think is going to emerge as the winner this earning season?
Amnish Aggarwal:
So far, the earning season has been very lacklustre. Barring a couple of banks which have done well, the majority of the companies have disappointed in Q1. If you look at the commentary of some of the companies like Kotak or Bajaj Finance – some of these financiers are the parameter of the economy – show that the demand trends and the stress on MSME or unsecured loans is very clearly visible.
Explore courses from Top Institutes in
Please select course:
Select a Course Category
Digital Marketing
MCA
Product Management
Finance
Design Thinking
Leadership
Others
CXO
MBA
Data Science
Project Management
Cybersecurity
Public Policy
Healthcare
Operations Management
Data Science
Artificial Intelligence
PGDM
Data Analytics
Management
Degree
healthcare
Technology
Skills you'll gain:
Digital Marketing Strategies
Customer Journey Mapping
Paid Advertising Campaign Management
Emerging Technologies in Digital Marketing
Digital Marketing Strategies
Customer Journey Mapping
Paid Advertising Campaign Management
Emerging Technologies in Digital Marketing
Duration:
12 Weeks
Indian School of Business
Digital Marketing and Analytics
Starts on
May 14, 2024
Get Details
Skills you'll gain:
Digital Marketing Strategy
Search Engine Optimization (SEO) & Content Marketing
Social Media Marketing & Advertising
Data Analytics & Measurement
Duration:
24 Weeks
Indian School of Business
Professional Certificate Programme in Digital Marketing
Starts on
Jun 26, 2024
Get Details
Skills you'll gain:
Digital Marketing Strategies
Customer Journey Mapping
Paid Advertising Campaign Management
Emerging Technologies in Digital Marketing
Duration:
12 Weeks
Indian School of Business
Digital Marketing and Analytics
Starts on
May 14, 2024
Get Details
by Taboola
by Taboola
Sponsored Links
Sponsored Links
Promoted Links
Promoted Links
You May Like
Why This NDAA-Compliant American Drone Company Is Crushing Chinese Competitors
Hylio | StartEngine
Learn More
Undo
Secondly, on the demand side also, not many consumer companies have so far come out with results. But if you look broadly, I am not very confident that many of them will beat the estimates and for a large part of those companies, we will see some cut in earnings as we go along. Similarly, in these two baskets, except for some good numbers from select capital good stocks or commodity companies which have been showing better margins like cement, steel, etc, – the earning season so far has been very tepid and demand has failed to take off.
The biggest weight in all the indices is financials. There also things are not looking great and that is the reason why it is keeping markets in a very narrow zone.
What do you make of the pharma pack for now because the earnings were not that bad? Look at Dr Reddy's numbers. Even Cipla managed to surprise as did Laurus Lab where the experts have raised the target price, though the management has reiterated their FY26 outlook. What is your view on the pharma pack right now?
Amnish Aggarwal:
Traditionally FMCG, IT, and pharma have been considered defensives and as of now, only the pharma segment is doing better. There is reasonably good demand in the domestic and also on the overseas side. Some part of it might also be due to the fact that there might be some stocking ahead of the tariff announcement because there is a lot of tariff uncertainty. But having said that, as of now, within the defensive pack, pharma is standing out and in certain cases, the valuations might not be cheap but a select pharma stock could do well if it has number visibility.
Live Events
You Might Also Like:
Jigar Mistry on 3 sectors that offer better earnings upside in Q1
Where is demand headed right now in terms of staples and where could strength return to the sector?
Amnish Aggarwal:
As of now, it is quite uncertain and in Q1 also we had a favourable base and because of elections, a lot of uncertainty. Ut at the same time this year, monsoons came early, we had unseasonal rains happening throughout May in the entire Hindi heartland. That also spooked the growth to some extent not only in the consumer staples but also in some parts of durables.
So, the conditions could not have been better because the monsoon is normal, the interest rates have been cut and there has been some reduction in taxes. Inflation is running at around 2-2.5% with food inflation on the negative side, one could not hope for better conditions for the recovery. But having said that, it is not visible to that extent and slowly, as we go along, we will see commentaries suggesting more recovery happening during 2Q or during the festival season. So, some stress is visible on the unsecured side and on the MSME side. The premium segment, the segment which the well-to-do or the affluent sections are using, continue to do well. But the other segments remain under pressure and may say another quarter or more for the things to stabilise. But yes, on the macro side the conditions are right for the sector to start reporting better volume numbers.
You Might Also Like:
Are current market valuations hiding opportunities or risks? Christy Mathai explains
Most excited about these business segments in next 1-2 years: Raamdeo Agrawal
Hashtags

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles


India.com
26 minutes ago
- India.com
Despite Trump's 25% Tariff, How India Still Beats Pakistan, Bangladesh On Trade Balance
New Delhi: Even as U.S. tariffs on Indian goods climb to 25 percent, the numbers tell a more layered story. Despite the blow, India still holds a stronger position in trade dynamics than some of its closest neighbours. In 2024, Indian products entering the American market faced an average effective tariff of 17.4 percent. That is lower than the 19.9 percent slapped on Bangladeshi goods, the 18.1 percent faced by Pakistan and Sri Lanka's 19.2 percent. These figures come from a recent analysis by Moneycontrol that measured the effective duties levied by the United States on major South Asian exporters. U.S. President Donald Trump, who reimposed tough trade penalties last month, had pointed fingers at India in a strongly worded post on July 30. 'Remember, while India is our friend, we have, over the years, done relatively little business with them because their tariffs are far too high, among the highest in the world. They have the most strenuous and obnoxious non-monetary trade barriers of any country… INDIA WILL THEREFORE BE PAYING A TARIFF OF 25%, PLUS A PENALTY FOR THE ABOVE, STARTING ON AUGUST FIRST,' he wrote on Truth Social. However, data on what economists call the tariff differential, the gap between what a country pays in U.S. tariffs versus what it charges on American imports, suggests India's trade relationship with Washington remains more balanced than many others in the region. India's tariff differential currently stands at 11.3 percentage points. That is significantly narrower than Bangladesh's 17.2-point gap or Pakistan's 13.6 points. Another regional exporter, Vietnam faces a 13-point spread. Bangladesh's position appears the most lopsided: its exports are hit by the highest U.S. tariffs, but it barely charges American goods in return. Meanwhile, India maintains an average 6.1 percent tariff on U.S. imports, more than Bangladesh but less than others, offering a cushion against the recent spike from Washington. Neighbouring Asian countries such as Thailand and the Philippines fare slightly better in terms of tariff balance, with gaps at 6.4 and 9.8 points respectively. But their trade mix is different, heavily skewed towards electronics and intermediate goods. India's exports to the United States, on the other hand, lean heavily on pharmaceuticals, garments, jewellery and consumer products. These sectors are more vulnerable to tariff hikes. While India's trade ties with Washington remain under strain, the data reflects that it may still be navigating the turbulence more stably than its regional peers.


Time of India
an hour ago
- Time of India
Gemini Daily Horoscope Today, August 5, 2025: Shape your future with timely steps
Today gives you a clear message: what you do now will affect your tomorrow. Your actions, thoughts, and even small decisions are building the next chapter of your life. You may feel a rush of energy or new ideas, and it is the right time to take the first step. Avoid overthinking. Focus on what matters and move forward with courage. Do not wait for perfect timing. Progress is waiting for you to start. Take action, even if it is small. Gemini Love Horoscope Today In love, actions matter more than promises. If you are in a relationship, today is a chance to show love through simple efforts like listening, helping, or sharing time. Words are sweet, but behaviour builds trust. If single, reflect on how your past actions in love have shaped your heart. What do you want to do differently now? A new connection may begin soon if your heart is ready. Be honest and kind, and love will respond to your truth. Gemini Career Horoscope Today In career matters, your ambition is strong today, and the stars support movement. Take advantage of this by finishing tasks or making that important phone call. Do not waste time on small talk or distractions. If you have a new idea, take a step toward it, even if it is not perfect. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like They Are Unstoppable: The Most Beautiful and Talented Female Athletes Undo People will notice your focus. This is not the time to pause. What you build now will reward you later. Gemini Money Horoscope Today Money matters may require attention and planning. It is time to be smart and not delay financial decisions. Make a small list of expenses and see where you can adjust. Do not lend or borrow casually today. Saving even a little will give you peace of mind. A good opportunity may come soon, and you will need resources to say yes. Stay alert and take action without fear. Your future wealth begins with today's smart thinking and practical money habits. Gemini Health Horoscope Today Your health can improve if you start a fresh routine. If you have been lazy or ignoring your physical needs, today is the right day to change that. Begin with something easy like a morning walk or drinking more water. Avoid fast food or too much screen time. Your body needs movement and proper sleep. Minor issues like throat irritation or back stiffness may come if you sit too long. Remember, your health tomorrow depends on your choices today. Take care with love. Discover everything about astrology at Times of India , including daily horoscopes for Aries , Taurus , Gemini , Cancer , Leo , Virgo , Libra , Scorpio , Sagittarius , Capricorn , Aquarius , and Pisces . Read your detailed Horoscope Today and Horoscope Tomorrow here.


Time of India
an hour ago
- Time of India
Opening Of First Of ₹332 Crore Twin Ajni Cable-Stayed Bridges Postponed by Five Months
1 2 Nagpur: After encountering multiple hurdles, the work on the much-awaited Rs332 crore six-lane, twin cable-stayed bridges at Ajni, being constructed to replace the 125-year-old British-era railway overbridge (RoB), has started in full flow. However, due to changes required in design to get multiple approvals due to other infrastructure projects at the spot, the opening of the first bridge has been delayed. The Maharashtra Rail Infrastructure Development Corporation (MRIDC) or MahaRail has now announced that one bridge will be opened to the public by the end of February next year — four months later than the originally scheduled opening in October. MahaRail MD Rajesh Kumar Jaiswal said it will be a remarkable structure, with eye-catching illumination. "The project was designed by a Taiwan firm, and was later approved by IIT Mumbai. The cable-stayed bridge needs multiple approvals, because of which the construction has been pushed forward till end of February 2026." The existing Ajni RoB is located between Ajni and Khapri Railway Stations over the Nagpur-Wardha section in the Nagpur division of Central Railway. However, since the bridge has outlived its life and regular traffic congestion, the six-lane, twin cable-stayed bridges were proposed, on the lines of Ram Jhula near the main railway station. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like video upload from file test Undo The work for the project started in April 2023, and MahaRail initially wanted to open one of the bridges by October 2025. However, it has been postponed now. "The new cable-stayed bridge will significantly reduce the traffic congestion in this area and will also add to the beauty of Nagpur city. MRIDC has taken a challenge to complete the first phase of RoB by February 2026, which will give major relief to the commuters," said MahaRail. MahaRail also claimed that one of the important things in the project is that traffic diversion is not required during the construction of the bridge since RoB is being constructed in two phases. MahaRail also claimed that it was very challenging and difficult to construct the foundation in between operational railway lines. "However, MRIDC has made remarkable progress. The work of the connecting beam has been completed, and a pylon at 52 metres height is being constructed above the connecting beam. The fabrication work of steel girders is almost 90% complete at the casting yard. Once completed, the girder will be transported to Ajni from the casting yard and installed," said the agency. Ajni RoB will provide direct connectivity to South and Central Nagpur. The new cable-stayed bridge will provide smooth traffic movement. "This cable-stayed overbridge will add architectural landmarks to the city. The proposed LED theme lighting during the night will enhance the beauty and will give an aesthetic appeal to the neighbourhood. There is provision of footpath on both sides of the cable-stayed bridge along with selfie points," said a MahaRail official. Box: BRIDGE IN TWO PHASES 1st Phase: Three-lane cable-stayed bridge, parallel to existing RoB, and its work is currently going on. Till construction is completed, traffic is allowed over the existing (old) bridge 2nd Phase: Old bridge will be demolished, and two-way traffic rerouted to new bridge. Second three-lane RoB will be built in place of the current Ajni bridge Final Traffic: Once second RoB is ready, each bridge will accommodate one-way traffic