Quarter first results are the next big factor for the Indian markets and the season as always is going to start with Infosys announcing it's Q1 numbers on Friday. Though the last quarter numbers weren’t too promising, experts feel Q1 FY 14 results will be on muted lines.
Ravi Rastogi from Globe Capital believes that IT sector might post better than expected results. “The recent depreciation in rupee will definitely have a positive impact. Also another key factor to add to sector's performance will the pick-up in demand from US.”
“Fertilizer companies will also post good results but Banking is one sector we will again have bad results. The pressure on non performing assets will continue to be seen on their balance sheet,” Ravi further added
On the other hand, Gaurang Shah from Geojit BNP Paribas feels that Infosys might disappoint this quarter as well in the results while Wipro's will post flattish numbers. “Out of the heavyweights, we feel TCS will post much better results as compared to its peers. We expect madcap IT companies to continue posting good results.”
He further added, “Defensive sectors like Pharmaceutical and FMCG companies will also post better than expected results while Metal, Real Estate and Infrastructure sector will see the most pressure on their balance sheet.”
Global investment giant, Citi issued a research report, as per which it believes that quarter first results will more or less be muted. As per Citi, “It should be a near 0 per cent growth quarter.” They feel that due to the fluctuations in the currency market and other issues pertaining to government policies and interest rate, India Inc, on average, would post sluggish numbers. The report further said, “Sales growth should remain slack but stabilize, while year-on- year margins gains will likely take a break.”
Overall experts feel that the best results this quarter will be posted by defensive stocks along with mid-sized IT companies while pressure will still carry on state-run banks, Metal and Real estate companies.