Corporate Q2 earnings are expected to be dull and may disappoint in some cases. Liquidity issues along with consumer spending slowdown could led to not so good Q2 growth numbers
The market delivered 3 percent return in the week ended October 18. This was backed by renewed FII inflow along with consistent DIIs money, government’s initiative towards strategic disinvestments — especially after stellar response to IRCTC, — stable earnings and favourable global cues including the Brexit deal.
With a rally in two consecutive weeks, benchmark indices recouped all its losses seen in the week ended October 4. The BSE Sensex ended at 39,298.38 and the Nifty50 at 11,661.90.
Corporate Q2 earnings are expected to be dull and may disappoint in some cases. Liquidity issues along with consumer spending slowdown could led to not so good Q2 growth numbers.
“We may see some consolidation in Nifty after the recent surge while movement on the specific stocks would continue. In the absence of any major event, global cues and earnings will continue to dictate the market trend,” said Ajit Mishra Vice President, Research, Religare Broking.
In Q2FY20, although corporates would have a lower base of profits, lower operating leverage in Q2FY20 would mean that margins may not show commensurate rise. A lot of these negative expectations are already in the price.
Corporate tax cuts will certainly lead to one-time adjustments and not upgrades.
However, at an aggregate level, revenues are expected to be slower on a YoY basis. But, this will not act as a deterrent suppressing the mood of Mr. Market. Markets should begin pricing in the revival of the economy given the stupendous government and Reserve Bank of India (RBI) initiatives in place, said Umesh Mehta, Head of Research, Samco Securities.
Here is a look at the top 10 companies which declared September quarter results last week:
Reliance Industries Q2 profit beats estimates, Jio registers healthy growth
RIL, the country’s most valued company by market capitalisation, reported highest every quarterly consolidated profit in September quarter, driven by refining, telecom and retail segments. Higher other income and lower tax cost also boost the bottom line.
Mukesh Ambani-led Reliance Industries registered an 18.34 percent year-on-year growth in second-quarter consolidated profit to Rs 11,262 crore. The sequential increase was 11.46 percent.
In Q2FY20, although corporates would have a lower base of profits, lower operating leverage in Q2FY20 would mean that margins may not show commensurate rise. A lot of these negative expectations are already in the price.
Corporate tax cuts will certainly lead to one-time adjustments and not upgrades.
However, at an aggregate level, revenues are expected to be slower on a YoY basis. But, this will not act as a deterrent suppressing the mood of Mr. Market. Markets should begin pricing in the revival of the economy given the stupendous government and Reserve Bank of India (RBI) initiatives in place, said Umesh Mehta, Head of Research, Samco Securities.
Here is a look at the top 10 companies which declared September quarter results last week:
Reliance Industries Q2 profit beats estimates, Jio registers healthy growth
RIL, the country’s most valued company by market capitalisation, reported highest every quarterly consolidated profit in September quarter, driven by refining, telecom and retail segments. Higher other income and lower tax cost also boost the bottom line.
Mukesh Ambani-led Reliance Industries registered an 18.34 percent year-on-year growth in second-quarter consolidated profit to Rs 11,262 crore. The sequential increase was 11.46 percent.
In Q2FY20, although corporates would have a lower base of profits, lower operating leverage in Q2FY20 would mean that margins may not show commensurate rise. A lot of these negative expectations are already in the price.
Corporate tax cuts will certainly lead to one-time adjustments and not upgrades.
However, at an aggregate level, revenues are expected to be slower on a YoY basis. But, this will not act as a deterrent suppressing the mood of Mr. Market. Markets should begin pricing in the revival of the economy given the stupendous government and Reserve Bank of India (RBI) initiatives in place, said Umesh Mehta, Head of Research, Samco Securities.
Here is a look at the top 10 companies which declared September quarter results last week:
Reliance Industries Q2 profit beats estimates, Jio registers healthy growth
RIL, the country’s most valued company by market capitalisation, reported highest every quarterly consolidated profit in September quarter, driven by refining, telecom and retail segments. Higher other income and lower tax cost also boost the bottom line.
Mukesh Ambani-led Reliance Industries registered an 18.34 percent year-on-year growth in second-quarter consolidated profit to Rs 11,262 crore. The sequential increase was 11.46 percent.
