After India Inc posted better than expected corporate earnings in the second quarter ended September-17, top fund manager Nilesh Shah said that the rally in the Indian stock markets could extend well beyond 2018. In an interview to ET Now, Nilesh Shah, Managing Director of Envision Capital said, “There’s a broad consensus that 2018 is likely to be a better year. One should now get into the stock market with a two year kind of perspective. The positivity and optimism should extend well beyond 2018.” Explaining his bullishness on the stock markets, Nilesh Shah said, “The positives from the structural reforms whether it is GST or demonetisation, should play out over 2018 and 2019. Corporate India, which has been plagued by single digit earnings growth so far, could enter into double digit growth.”
After the earnings came in better than anticipated many experts including Abhimanyu Sofat of IIFL said that India Inc will enter into double digit earnings growth. In an interview to ET Now, Abhimanyu Sofat ,VP- Research, IIFL said, “After a long time, we are going to hit double digit earnings growth. We look quite optimistic about the future in terms of earning momentum where the consumer cycle also improves with the shift from the unorganised to organised as well.”
On similar lines, Jonathan Garner of Morgan Stanley said, “We are cyclically at the beginning of an upswing in activity and in credit growth and therefore in corporate earnings. So look at corporate earnings growth. We should be getting at least high teens year-on-year (Y-o-Y) earnings growth for the next two years running.”
Taking stock of earnings reported by India Inc in the quarter gone by, research firm Motilal Oswal says that it was a ‘breath of fresh air,’ as most of the corporates have beaten street estimates. In an interview to CNBC TV18, Gautam Duggad of Motilal Oswal Securities said, “The earnings have come as breath of fresh air and one can look forward to better earnings due to base effect and disruptions behind us.”
