“Earnings have been quite good across sectors. PSU banks did well, some consumption names were outliers, pharma performed decently, and metals and commodities did well. Overall, earnings have been better than we estimated,” Aggarwal said.
He noted the broader economic environment remains favorable. “Inflation is benign and consumption demand is likely to move up. Metals like Tata Steel and JSPL are doing well, and some consumption stocks like Britannia and Titan continue to perform. There’s enough on the plate for markets to move up.”
On Asian Paints, Aggarwal expressed cautious optimism. “Numbers beat street estimates, but there’s no big surprise. Margins were low in the base, so we won’t see declines like last year. But double-digit growth seems unlikely. Profit growth may be high single-digit, and the recent 20% rally has already factored in positives. Room for immediate upside is limited.”
Regarding defence companies like Cochin Shipyard, he advised a long-term perspective. “Defence numbers are lumpy quarter-to-quarter, depending on order deliveries. But long-term, order books are strong and momentum is good. Quarterly fluctuations shouldn’t drive decisions.”
On private sector banks, Aggarwal highlighted improving fundamentals. “Banking numbers should improve as NIM pressures ease. Credit growth is in double digits, and if the economy picks up, banks will report better numbers. HDFC, Axis, and ICICI should see traction as NPAs stabilise and LDR normalises.”With earnings broadly beating expectations and multiple sectors showing resilience, experts like Aggarwal see potential for markets to continue climbing, though caution is advised for highly valued stocks.