Q4 earnings season has kicked off on a strong note with IT majors TCS and Infosys meeting the Street expectations and Wipro exceeding analysts’ estimates.
To be sure, strong earnings for India Inc this time is a given due to the weak base of last year. And therefore, investors would be more keen in looking for signs of further recovery and management commentaries on the likely impact of the second wave of Covid on businesses.
We caught up with Srinivas Rao Ravuri, CIO-Equities, PGIM India Mutual Fund, to know his views on the likely management commentaries we may see this earnings season. In his conversation with Amit Mudgill of ETMarkets.com, Ravuri talked about market valuations, sectors leading the earnings recovery, Covid 2.0 impact, and themes one can bet on for long-term success.
Welcome to the show, Mr Ravuri!
>> With Q4 results likely to see a low base effect, what are your broader earning expectations for Nifty?
>> Which sectors may contribute the most to the earnings rebound?
>> Market expectations are high, so are the rising cases of Covid cases in the second wave. Can we expect significant earnings downgrade in the next one or two months?
>> What sort of management commentaries are you expecting this earnings season?
>> How many quarters will it take for earnings to catch up, so that yields may look attractive against bond yields?
>> If you were to bet on a sector or theme that can deliver a strong return over the next 3 years, which sector would it be?
Thank you, Mr Ravuri. That was indeed an insightful conversation that will surely help our listeners to make an informed portfolio decision.
That’s it in this week’s edition of the special weekend podcast. Do come back next Saturday for this weekly special. You can check out our regular podcasts on the equity market twice every week day.
