Motilal Oswal sees a better second quarter

Motilal Oswal, chairman and managing director, Motilal Oswal Financial Services, feels India Inc’s earnings estimates are quite positive and the corporates will build upon the positive trend in the second quarter of the current fiscal. 

According to him, there will be some serious headwinds from oil marketing companies’ (OMCs) profitability while PSU banking sector will stage a comeback. He feels the earnings numbers for March 2019 will be better than March 2018.

“Good companies with stable fundamentals of corporate growth, backed by great managements, are expected to grow by 15-20% annually, while cyclical companies such as agri-commodities or stock brokerages will remain volatile,” Oswal said. He expects the manufacturing sector, led by automobiles, white goods to have a higher teen growth and FMCG to have higher single-digit growth.  Export-oriented sectors such as technology and pharm, on the back of sharp rupee depreciation, will be in limelight, he said, adding, companies with less volatility will attract higher price multiples.