Q2 Results mixed as industrials and OMCs post strong numbers, IT and chemicals drag - 5 key sectoral trends
FY25E earnings at risk due to fading margin tailwinds. High valuations and slowing top line keep brokerage cautious. Overweight stance on FMCG, IT, autos, telecom, internet, and pharmaceuticals. Underweight call on BFSI, industrials, commodities, and durables.
In itsQ2FY24 earnings review report, domestic brokerage Nuvama Institutional Equities has retrospectively and prospectively connected the performance of the sector to five trends that have been evident thus far in the second quarter of FY24. The brokerage states that domestic investment, global exporters, commodities, domestic consumption, and financials are the five trends associated with the sectors.