“What is your view on earnings revival? Could it start from Q3?” asked ET Now.
Tandon responded cautiously: “The numbers this quarter have been good, partly due to inventory buildup before US tariffs and seasonal demand around Diwali. Whether this marks the bottom of the earnings decline is still unclear. Analysts start with 15% growth for the next year, which often tapers down. I don’t see major changes unless tariffs or other factors turn positive.”
On potential insurance mergers, ET Now asked: “How do you see the insurance sector, given life insurance names have lagged?”
Tandon expressed concerns: “I don’t think merging insurance with non-insurance is a great idea. Insurance needs tight regulation and capital requirements, and different regulators may not align easily. Life insurance growth is still mostly from ULIPs, but the sector has a long runway, so staying invested could be worthwhile despite recent underperformance.”
Finally, on discretionary consumption, ET Now asked: “Which pockets look attractive right now?”Tandon said: “I’m less bullish on domestic consumption due to IT sector hiring cuts. Real estate shows steady demand, supporting housing-related consumer durables. The automobile sector benefits from GST cuts, especially higher-end SUVs, and may continue to do well.”Investors are watching cautiously, balancing seasonal earnings factors with sector-specific opportunities.