Nilesh Shah believes that some midcap IT companies are likely to outperform expectations, even if absolute numbers are weak, because expectations are already low.
Nilesh Shah also sees potential in consumer durables and discretionary segments, where earnings may beat estimates. In the banking and financial services sector, he expects selective outperformance.
Nilesh Shah cautions that earnings disappointments are more likely to be stock-specific rather than sector-wide. Real estate, particularly in the mid and lower segments, is showing signs of slowdown. Sectors like paints may face pressure, and commodities may underdeliver due to a higher base. He expects overall earnings to remain rangebound.