Most domestic high-frequency indicators have trended higher during the quarter and are likely to translate into good demand momentum for the domestic corporate segment.
On Wednesday, six companies including Crisil, SG Mart, Den Networks, Integra Essentia, Lotus Chocolate and Shree Ram Properties will announce their quarterly results.
The Board of Crisil will also consider and likely approve an interim dividend for the financial year ending 2024-25.
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The earnings season is off to a good start with TCS numbers beating expectations, setting an optimistic mood for the overall IT sector. Other biggies like Infosys and Wipro will declare their results later this week.Within the IT sector, analysts expect consolidation to persist due to slowdowns in spending and uncertainties surrounding US policy rates.The banking sector, even though it might see a moderate quarter, will continue to see sequential improvement in the credit growth for the retail and SME segments.
“Moreover, the improvement in the asset quality trend is likely to continue for the quarter, which is likely to bring further confidence in the space,” Axis Securities said.
During the quarter, the focus for investors with regards to banks will primarily be on management commentary regarding the growth outlook.
Meanwhile, the Indian auto companies have seen a significant demand improvement with most categories witnessing encouraging traction on a year-on-year basis.
“This has been on account of a richer product mix, higher average selling price, and the moderation in the raw material prices. Most of the OEMs in our coverage will likely see margin expansion and improvement in profitability,” Axis Securities said.
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