India's Communication Services to deliver strongest EPS growth in 2025 and 2026: JP Morgan
New Delhi [India], May 13 (ANI): JP Morgan's latest outlook on MSCI India earnings growth estimates signals a positive trend in sectoral earnings per share (EPS) for 2025 and 2026.
The data, released by the financial major, shows that India's sectoral earnings are set to grow steadily, with some sectors poised to deliver standout performances over the next two years.
According to the JP Morgan chart, Communication Services is expected to deliver the strongest EPS growth among all sectors.
For 2025, the grey bar for this sector touches nearly 45 per cent, and the green bar for 2026 maintains this level, making it the most promising sector in both years.
The previous estimate (grey diamond) for 2025 was slightly higher, showing some moderation, but the outlook still remains solid. Similarly, the 2026 estimate (green diamond) has remained stable, showing consistency in analyst expectations.
Materials is another sector showing significant growth potential. EPS is projected to rise by about 30 per cent in 2025. The estimates have improved compared to projections made three months ago, indicating rising optimism. The Materials sector, with a sector weight of 7.5 per cent in MSCI, could contribute meaningfully to overall earnings growth.
Industrials also show strong performance, with EPS growth of over 20 per cent expected in both 2025 and 2026. While the latest 2026 forecast is slightly lower than the earlier estimate, the 2025 outlook remains firm, represented by stable green and green-diamond markers.
The Financials and Consumer Discretionary sectors follows, with projected EPS growth between 13 per cent and 18 per cent over the next two years.
Healthcare, despite having a smaller index weight of 5.7 per cent, is also expected to post EPS growth of around 10 per cent in both years.
On the other hand, sectors like Utilities, Technology, and Energy are expected to see only low single-digit growth. These sectors remain the laggards in the earnings forecast.
The overall MSCI India index is projected to grow at around 13 per cent in 2025 and 15 per cent in 2026, reflecting a stable macro outlook for Indian corporates.
JP Morgan's projections suggests to keep an eye on Communication Services, Materials, and Industrials, as these sectors are expected to drive India's earnings growth in 2025 and 2026. (ANI)
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Time of India
an hour ago
- Time of India
India a must at G7 table: Mark Carney on inviting PM Modi
NEW DELHI: Canadian PM Mark Carney defended the last-minute invitation to his counterpart Narendra Modi for the , saying it made sense for Canada and other members to invite the "5th largest economy" and the most populous country in the world that's central to a number of supply chains. Tired of too many ads? go ad free now While Modi's travel programme is not finalised yet, he's expected to reach Alberta in time for the G7 outreach session on June 17. Other G7 members keen on seeing Modi's participation, hints Carney The G7 summit begins on June 15. Asked repeatedly about why Canada would have Modi over when the probe into the killing of Khalistan separatist Hardeep Singh Nijjar is still on, Canadian PM Mark Carney said there had been progress on law enforcement dialogue which "recognises issues of accountability". Carney's predecessor Justin Trudeau had wrecked the India-Canada relationship by alleging the Indian govt's role in the murder without, as India continues to maintain, sharing any evidence. "Bilaterally, we have now agreed-importantly-to continued law enforcement dialogue. So, there's been some progress on that, which recognises issues of accountability. I extended the invitation to Prime Minister Modi in that context, and he has accepted,'' said Carney, responding to questions from the media about the issue and the invitation to Modi. "We are a country of the rule of law. The rule of law is proceeding as it should in Canada, and I am not going to disrupt that process,'' he added. Carney hinted that other G7 members were keen on seeing participation by the Indian leader. "First, we are in the role - Canada is in the role - of the G7 chair, and in those discussions, as agreed with our G7 colleagues, we're addressing important issues like energy security, the digital future, and critical minerals, among others. Tired of too many ads? go ad free now Partnerships in building infrastructure in the emerging and developing world are also part of the agenda,'' he said. "In my capacity as G7 chair, and in consultation with others - some of whom also make these determinations - it makes sense to include India, the fifth-largest economy in the world, effectively the most populous country, and central to a number of those supply chains,'' he added.
Hindustan Times
2 hours ago
- Hindustan Times
India seeks exemption from US' 10% baseline tariff
The fate of the 10% baseline tariffs that the Trump administration invoked on imports from all countries on April 2 is among the issues now at the heart of negotiations between New Delhi and Washington as they attempt to hammer out an early tranche of the trade deal, people aware of the matter have said. Delhi is not in favour of replicating, as suggested by the American negotiators, the approach in the trade deal struck between the US and the UK, where British goods are still subject to the baseline tariffs, these people added. According to a person with direct knowledge of the discussions, Indian negotiators are pushing for their American counterparts to remove the baseline 10% rate as well as commit to assurances that the additional 16%, due to be implemented on July 9, will be left off. An American negotiating team led by assistant US Trade Representative Brendan Lynch 4 landed in Delhi on June for what is the fifth time negotiators from either side have gone to the other's capital for face-to-face talks. The American delegation is expected to be in Delhi till June 10, longer than the previously expected two-day visit. ALSO READ | India-US trade negotiations hit top gear, American delegation extends Delhi stay 'Ideally, both the 10% baseline tariff on Indian goods and the additional 16% from July 9 must end simultaneously after an interim deal is signed. Else, India will also have rights to continue proportionately similar tariffs on American goods till the time the US withdraws the entire 26% reciprocal tariff,' one of them said, citing a joint statement by the two countries' leaders issued on February 13 in Washington. While expounding 'Mission-500' to double bilateral trade to $500 billion by 2030 on February 13, the two leaders – Prime Minister Narendra Modi and President Donald Trump – in their joint statement mentioned the need for new 'fair-trade terms' that are 'mutually beneficial', the person said. A second person aware of the matter corroborated India's stance: 'Only a mutually beneficial deal would have a long life'. 'Both India and the US are sovereigns. One is the oldest democracy and the other is the largest democracy. While the US is the largest economy, India is the fastest growing major economy of the world. Hence, the deal must be balanced, equitable, fair and acceptable to their people,' the first person said. The second person added that India sees trade interests between both nations as being 'complementary and not competitive', hence New Delhi is open to giving greater market access to the American goods in the Indian market provided Washington reciprocates. 'The trade negotiations continue in New Delhi covering all these matters in a constructive manner as we speak and both sides are hopeful for a win-win,' he said. ALSO READ | Donald Trump claims India willing to cut 100% tariffs on US goods, 'but…' After UK industries faced American tariffs of 25% on all aluminium, steel and derivatives (announced on March 12), 25% tariff on passenger vehicles (announced on April 3), 25% tariff on automobile parts (beginning May 3), and a 10% baseline tariff on all imports (from April 5) – the UK and the US on May 8 announced an economic prosperity deal (EPD). The mini deal secured some concessions for the UK, but the 10% baseline tariff continued. Both partners are racing to conclude an interim, or regarded as an 'early harvest', deal before July 9, which will be followed by a wider first tranche of Bilateral Trade Agreement (BTA) by September-October 2025. After that a comprehensive BTA will be negotiated, they said. ALSO READ | How Donald Trump decided the tariff for India The current negotiations for an early harvest deal involve greater market access for goods by eliminating tariffs and non-tariff trade barriers, and improving supply chain integration, they said. The current New Delhi round is followed by a face-to-face negotiation between the two teams in the US. During that period, Union commerce and industry minister Piyush Goyal was also in the US from May 17-22 where he held meetings with his counterparts, US commerce secretary Howard Lutnick and USTR Jamieson Greer.
India Gazette
4 hours ago
- India Gazette
Gujarat: CM Patel inaugurates new development center of Infosys at GIFT city
Gandhinagar (Gujarat) [India], June 7 (ANI): Gujarat Chief Minister Bhupendra Patel, while inaugurating the new Development Center of Infosys at GIFT City, reaffirmed the State Government's commitment to advancing the AI industry by implementing artificial intelligence-based systems across the state. He stated that the establishment of an AI Centre of Excellence at GIFT City is aimed at creating a unified platform that brings together solution developers, experts, professionals, and startups under one roof. According to the release, the newly operational Development Center of Infosys at GIFT City will focus on delivering advanced financial technology solutions under the FinTech framework. Additionally, it will place a strong emphasis on global services and innovation. In addition, the centre will provide advanced analytics, machine learning, and AI-driven insights specifically tailored for financial institutions. It will also focus on delivering secure and transparent solutions for digital payments, smart contracts, and asset tokenization. Established with an investment of Rs32 crore, the Infosys Development Center is expected to create employment opportunities for over 1,000 professionals, further mentioned in the release. Expressing his gratitude to Infosys for establishing this Development Center in Gujarat, Chief Minister Bhupendra Patel stated that GIFT City--envisioned under the visionary leadership of Prime Minister Narendra Modi--has emerged as the nation's hub for technology and fintech, hosting several leading global IT, fintech, and new-age technology firms. He further added that the definition of technology has transformed over the past decade as a result of the Digital India Mission launched by Prime Minister Narendra Modi. Under the Prime Minister's leadership, several policies and missions have been initiated over the past 11 years to give focused impetus to IT-enabled industries, semiconductors, and the electronics sector. The Chief Minister stated that Gujarat is fully prepared to lead in positioning India as a soft power leader and a knowledge-based economy. He also recalled the significant role played by Infosys founder Narayana Murthy in establishing 'iCreate,' an institution dedicated to guiding youth in the field of innovation in the state. On the occasion, Infosys CFO Jayesh Sanghrajka highlighted the company's growth journey, noting that Infosys, a global leader in consulting and IT services, was founded in 1981. With over four decades of experience in managing systems and processes for global enterprises, Infosys today supports clients in 56 countries and has a strong workforce of over 320,000 employees worldwide. He further mentioned that in 2024, Infosys was recognized as one of the best employers in India and, for the fourth consecutive year, ranked among the top 50 large companies in the country for women to work. On this occasion, Principal Secretary of the Department of Science and Technology, Mona Khandhar, IFSCA Chairperson K. Rajaraman, Infosys Senior Vice Presidents Rajneesh Malviya and Niladri Prasad Mishra, and Director of ICT & e-Governance, Government of Gujarat, Kavita Shah, along with other dignitaries. (ANI)
