The earnings season has kicked-off with some of the smaller banks already showing disappointing results. The bigwigs are likely to see a kick-off with TCS due later this evening. Here is what is expected from the earnings season.
Banking results: same old story
It is going to be the same old story for the banking quarterly numbers. PSU Banks are going to report a poor set of quarterly numbers and some private sector banks like ICICI Bank may continue to see elevated levels of non performing assets.
HDFC Bank, Yes Bank and IndusInd bank are going to have another very good set of quarterly numbers, which is as expected.
IT companies: muted results
Results from the IT sector would kick start today with the quarterly numbers of TCS. It is largely expected that IT companies would report a muted growth this quarter. However, what would be eagerly watched would be the guidance from these companies. The markets have also fluctuated a little bit, which should start getting reflected in the numbers. Overall, it is going to be a subdued quarter.
The pharma sector always tends to surprise in either direction. The bigwigs like Sun and Lupin may continue to have a very subdued performance, while Aurobindo may have a much better performance. This is largely because Aurobindo has a very well diversified portfolio, where its performance does not dependence only on a few products.
By and large nothing great is expected from the pharma sector.
Metals: an outperformer
Metals is going to be the only pack where the results are going to be excellent. A rise in metal prices like lead and zinc is going to augur well for these companies. It will not be a surprise to see a very good performance from some of the steel companies as well. However, most of the shares have rallied and hence there may not be any scope for re-rating based on performance.