Latest news with #AniruddhaSarkar
Time of India
5 days ago
- Business
- Time of India
Can rising EPS estimates restore investors confidence despite tariff uncertainties?
Mumbai: Investors may have a reason to cheer amid elevated uncertainties over the fallout of tariffs in the near term. Analysts have increased the earnings per share (EPS) estimates of most large companies following the March quarter, reversing two straight quarters of downgrades. Of the companies on the Nifty 500 index tracked by at least five analysts or more, 315 saw EPS upgrades in the fourth quarter compared with the December quarter, according to data from Eikon. EPS estimate upgrades signal improving earnings outlook, boosting investor confidence and often driving stock prices higher. "After two consecutive quarters of disappointing earnings, we've now seen some early rounds of earnings upgrades from analysts across selective companies following the fourth quarter numbers," said Aniruddha Sarkar, chief investment officer and portfolio manager at Quest Investment Advisors. "Government capex picking up sharply in the last four months is largely responsible for the same, along with a pickup in consumer spending." Analysts had moderated the earnings outlook in the previous two quarters after profits slowed to single digits amid concerns over an economic slowdown. The EPS growth of Nifty 50 was at 4.1% in the June quarter and 8.9% in the September quarter from the year-ago periods. In January-March, EPS grew at 10.9% from the same period a year ago. The EPS growth for FY25 was at 9% year-on-year. Live Events Agencies Slowing corporate earnings and the resultant downgrades by analysts were reasons for the sell-off in Indian equities between September-end and March, as investors found stock valuations rich in the face of the squeeze in profitability. Money managers expect further recovery in earnings in the quarters ahead. The Nifty's EPS is expected to grow at about 13% on a compounded basis between FY25 and FY27, up from 10.9% in the fourth quarter, supported by a lower base of FY25, accommodative monetary policy, and continued government spending , said Nikhil Rungta, co-chief investment officer - equity at LIC Mutual Fund. "Banks benefited from improved asset quality, while the auto sector saw steady domestic demand and successful new launches," he said. "Government-led capex supported infrastructure and real estate, and a rural demand revival boosted consumption." The pace of upgrades will be crucial for determining the direction of the market. "We believe the first quarter of FY26 could see some more modest upgrades but the pace of upgrades across the broader market could pick up from Q2 onwards as the low base of FY25 will come into play," said Sarkar.
Economic Times
6 days ago
- Business
- Economic Times
Can rising EPS estimates restore investor confidence despite tariff uncertainties?
Live Events Agencies (You can now subscribe to our (You can now subscribe to our ETMarkets WhatsApp channel Mumbai: Investors may have a reason to cheer amid elevated uncertainties over the fallout of tariffs in the near term. Analysts have increased the earnings per share (EPS) estimates of most large companies following the March quarter, reversing two straight quarters of the companies on the Nifty 500 index tracked by at least five analysts or more, 315 saw EPS upgrades in the fourth quarter compared with the December quarter, according to data from estimate upgrades signal improving earnings outlook, boosting investor confidence and often driving stock prices higher."After two consecutive quarters of disappointing earnings, we've now seen some early rounds of earnings upgrades from analysts across selective companies following the fourth quarter numbers," said Aniruddha Sarkar, chief investment officer and portfolio manager at Quest Investment Advisors. "Government capex picking up sharply in the last four months is largely responsible for the same, along with a pickup in consumer spending."Analysts had moderated the earnings outlook in the previous two quarters after profits slowed to single digits amid concerns over an economic slowdown. The EPS growth of Nifty 50 was at 4.1% in the June quarter and 8.9% in the September quarter from the year-ago periods. In January-March, EPS grew at 10.9% from the same period a year ago. The EPS growth for FY25 was at 9% corporate earnings and the resultant downgrades by analysts were reasons for the sell-off in Indian equities between September-end and March, as investors found stock valuations rich in the face of the squeeze in profitability. Money managers expect further recovery in earnings in the quarters Nifty's EPS is expected to grow at about 13% on a compounded basis between FY25 and FY27, up from 10.9% in the fourth quarter, supported by a lower base of FY25, accommodative monetary policy, and continued government spending , said Nikhil Rungta, co-chief investment officer - equity at LIC Mutual Fund."Banks benefited from improved asset quality, while the auto sector saw steady domestic demand and successful new launches," he said. "Government-led capex supported infrastructure and real estate, and a rural demand revival boosted consumption."The pace of upgrades will be crucial for determining the direction of the market. "We believe the first quarter of FY26 could see some more modest upgrades but the pace of upgrades across the broader market could pick up from Q2 onwards as the low base of FY25 will come into play," said Sarkar.
Time of India
6 days ago
- Business
- Time of India
Can rising EPS estimates restore investor confidence despite tariff uncertainties?
Live Events Agencies (You can now subscribe to our (You can now subscribe to our ETMarkets WhatsApp channel Mumbai: Investors may have a reason to cheer amid elevated uncertainties over the fallout of tariffs in the near term. Analysts have increased the earnings per share (EPS) estimates of most large companies following the March quarter, reversing two straight quarters of the companies on the Nifty 500 index tracked by at least five analysts or more, 315 saw EPS upgrades in the fourth quarter compared with the December quarter, according to data from estimate upgrades signal improving earnings outlook, boosting investor confidence and often driving stock prices higher."After two consecutive quarters of disappointing earnings, we've now seen some early rounds of earnings upgrades from analysts across selective companies following the fourth quarter numbers," said Aniruddha Sarkar, chief investment officer and portfolio manager at Quest Investment Advisors. "Government capex picking up sharply in the last four months is largely responsible for the same, along with a pickup in consumer spending."Analysts had moderated the earnings outlook in the previous two quarters after profits slowed to single digits amid concerns over an economic slowdown. The EPS growth of Nifty 50 was at 4.1% in the June quarter and 8.9% in the September quarter from the year-ago periods. In January-March, EPS grew at 10.9% from the same period a year ago. The EPS growth for FY25 was at 9% corporate earnings and the resultant downgrades by analysts were reasons for the sell-off in Indian equities between September-end and March, as investors found stock valuations rich in the face of the squeeze in profitability. Money managers expect further recovery in earnings in the quarters Nifty's EPS is expected to grow at about 13% on a compounded basis between FY25 and FY27, up from 10.9% in the fourth quarter, supported by a lower base of FY25, accommodative monetary policy, and continued government spending , said Nikhil Rungta, co-chief investment officer - equity at LIC Mutual Fund."Banks benefited from improved asset quality, while the auto sector saw steady domestic demand and successful new launches," he said. "Government-led capex supported infrastructure and real estate, and a rural demand revival boosted consumption."The pace of upgrades will be crucial for determining the direction of the market. "We believe the first quarter of FY26 could see some more modest upgrades but the pace of upgrades across the broader market could pick up from Q2 onwards as the low base of FY25 will come into play," said Sarkar.
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Business Standard
09-05-2025
- Business
- Business Standard
Stock Market Close Highlights: Sensex falls 400pts, Nifty ends at 24,273 as India-Pak tensions rise
Sensex Today | Stock Market Close Highlights: Among the sectoral indices auto, energy, FMCG, realty, metal, pharma. oil & gas settled in red 8:53 AM Stock Market LIVE Updates: 'Dip in buying after the opening bell yesterday shows bias remains bullish' Stock Market LIVE Updates: "The nifty ended flat yesterday but the dip in buying that emerged immediately after the opening bell shows that the bias remains bullish, even though geopolitical risks remain high. Support lies in the 24,000-24,200 area while resistance covers the 24,510 to 23,589 zone." Views by: Akshay Chinchalkar, Head of Research, Axis Securities 8:38 AM Stock Market LIVE Updates: Virtual Galaxy Infotech IPO opens on May 9: Here's all you need to know Stock Market LIVE Updates: Virtual Galaxy Infotech's initial public offering (IPO) is set to open for subscription tomorrow, Friday, May 9, 2025. The Nagpur-based firm intends to raise ₹93.29 crore through the issuance of 6.57 million new equity shares. The IPO does not include any offer for sale (OFS) component. The company has allocated approximately 50 percent of the offering to qualified institutional buyers (QIBs), 35 percent to retail investors, and 15 percent to non-institutional investors (NIIs). 8:11 AM Stock Market LIVE Updates: Tata Motors, SRF, and Bajaj Finance are top stocks to buy today; here's why Stock Market LIVE Updates: Buy: Tata Motors Following a breakout from a multi-week consolidation, TATAMOTORS shows increasing volume alongside its upward price movement, signaling renewed buying interest. We anticipate a near-term rally in the stock. 8:09 AM Stock Market LIVE Updates: DIIs overtake FPIs as dominant investors in Indian markets in March quarter Stock Market LIVE Updates: As of March 2025, domestic institutional investors (DIIs), mainly mutual funds and insurance firms, have become the leading shareholders in India's equity market, marking a notable change. Data from Prime Database reveals that DIIs held a 17.62 percent stake in National Stock Exchange (NSE)-listed companies, slightly exceeding the 17.22 percent held by foreign portfolio investors (FPIs). This is the first instance of DIIs surpassing FPIs in shareholding since tracking commenced in 2009, with the value of DII holdings reaching ₹71.76 trillion, 2 percent greater than that of FPIs. READ MORE 7:54 AM Stock Market LIVE Updates: NSE receives in-principle approval from Sebi for electricity derivatives 7:49 AM Stock Market LIVE Updates: Operation Sindoor: Prolonged strikes can sink markets, say analysts Stock Market LIVE Updates: Analysts suggest that a protracted war or heightened tensions with Pakistan following Operation Sindoor, the Indian armed forces' retaliatory attack on Pakistan and Pakistan Occupied Kashmir (PoK), could trigger a market downturn. However, they anticipate a potential recovery if the measures remain targeted and tensions subsequently ease. Aniruddha Sarkar, chief investment officer at Quest Investment Advisors, noted that historical trends indicate Indian markets have generally performed well during and even after border conflicts with Pakistan, suggesting a similar outcome might be expected this time. READ MORE 7:36 AM Stock Market LIVE Updates: India grants UK access to £38 bn Indian procurement market under FTA Stock Market LIVE Updates: As part of the newly concluded free trade agreement (FTA), India has made a notable concession to the United Kingdom (UK) by granting "legally guaranteed access" to its substantial government procurement market. The UK government estimates this will enable British businesses to compete for approximately 40,000 Indian tenders annually, valued at a minimum of 38 billion pounds. According to a policy paper from the UK Department for Business & Trade, this agreement marks a first, allowing UK businesses to bid on a wide range of goods, services, and construction procurements across most of India's central government entities and several federal state-owned enterprises, with bidding thresholds lower than previously established. READ MORE 7:33 AM Stock Market LIVE Updates: 13 killed, over 50 injured as Pak army pounds villages along LoC in J-K Stock Market LIVE Updates: Following India's missile strikes on terror infrastructure in the neighboring country and PoK, the Pakistan Army initiated intense artillery and mortar shelling along the LoC in Jammu and Kashmir, resulting in the deaths of at least 13 people, including four children and a soldier, and injuring 57, officials reported on Wednesday. This marked one of the most severe instances of shelling in years, forcing hundreds of border residents to seek shelter in underground bunkers or relocate to safer areas. The indiscriminate shelling by Pakistan caused widespread destruction in the worst-affected Poonch district and Rajouri in the Jammu region, as well as Baramulla and Kupwara in north Kashmir. Numerous houses, vehicles, and various buildings, including a Gurudwara, were damaged, triggering panic among the local population.
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Business Standard
07-05-2025
- Business
- Business Standard
Operation Sindoor: Prolonged strikes can sink markets, say analysts
A prolonged war / tension with Pakistan post Operation Sindoor – the retaliatory attack by Indian armed forces on Pakistan and Pakistan Occupied Kashmir (PoK) – could 'sink' markets, suggest analysts. However, they could see a recovery in due course if the measures are limited only to select targets and the tensions de-escalate, they said. History, Aniruddha Sarkar, chief investment officer at Quest Investment Advisors said, suggests that Indian markets have most of the times done well during and even after any conflict with Pakistan on the borders. This time is no different. 'Though the geopolitical concerns have been there for the last two weeks, yet foreign institutional investor (FII) inflows continued into our markets, which is a stamp of our economic resilience to these short-term border conflicts. Any military campaign which would be limited to selected targets and be over within a few days or weeks, would not have any negative impact on our economy or markets. Prolonged conflict, which seems unlikely at this moment, could impact investor sentiment negatively as they would prefer a risk off mode,' Sarkar said. In the intervening night of May 6 and May 7, Indian armed forces carried out strikes on terrorist infrastructure in Pakistan and Pakistan-occupied Jammu and Kashmir (PoJK) in response to the terrorist attack in Pahalgam on April 22 that left 26 civilians dead. Historically, Indian equity markets have typically reacted sharply to geopolitical tensions in the short-term as a knee-jerk, but recovered quickly once uncertainties subsided. For example, during the Kargil conflict between India and Pakistan in mid-1999, markets experienced a significant correction. However, they rebounded strongly as it became evident that the conflict would be short-lived. Ambareesh Baliga, an independent market analyst, too, feels that if Operation Sindoor remains localised within a band / territory with targeted strikes and ends soon, the markets could witness a smart recovery. 'In case the current conflict widens, the uncertainty will sink the market. As of now it would be a wait-and-watch strategy. Post Balakot also, we witnessed a smart move up in the markets,' he said. The information available till now on Operation Sindoor has been digested by the markets, feels U R Bhat, co-founder & director, Alphaniti Fintech. For the markets to stabilize, he feels, more information is needed on how Pakistan is likely to react to the developments. "The markets are waiting with bated breath and are likely to remain volatile. While the available information has been digested by the markets, any escalation in the tensions will see them spiral down. As a strategy, investors should sell the rallies till there is truce and more clarity on the developments," he said. Within the market segments, G Chokkalingam, founder and head of research at Equinomics Research, said small-and mid-cap segments may underperform the large-caps as retail investors' participation seems to be weak due to geopolitical developments. "Till intense tensions on border moderates, we suggest some tilt towards large-caps, especially the Sensex and Nifty stocks. Of course, if there is any escalation or war with Pakistan, then the whole market, including large-caps may see a substantial fall," he warns.
