As the earnings season kicks off for this fiscal year, several market experts have constantly highlighted the need to have strong growth in order to match with expensive valuations.
Birla Sun Life Asset Management Company (AMC) sees this quarter's year-on-year growth to be marginally lower. “Some sectors such as the auto sector and some corporate banks could be hit and expect the quarter to be slightly disappointing,” Mahesh Patil, Co-CIO, Birla Sun Life AMC told CNBC-TV18 in an interview.
That said, he also sees earnings recovery in the quarters to come, more so in the second half of the fiscal. The base case, he explained, is favourable with demonetisation and its impact seen during the last year. “Growth of over 25 percent does not look out of the world,” he told the channel.
