JM Financial expects 25-26% earnings growth in FY20

If we look through more obvious events—elections, NBFCs, oil prices—two trends suggest that the outlook on investment or capex is bit better than beginning of CY18, Suhas Harinarayanan, managing director of institutional equities at JM Financial said in interview to CNBC-TV18.

"We need to look at beyond these events, we expect double digit growth in capex over next two years including state governments and industrial capex etc. But rural outlook is looking weaker than beginning of CY18," he further said.

In the next 5-6 months, he expects the market to be volatile in run up to general elections 2019.

The market is expected to trade at 18-18.5 PE on next 12 months earnings, which are not cheap valuations but also not expensive, he said.

Harinarayanan expects 25-26 percent earnings growth in FY20 and barring financials, the growth could be around 15-16 percent.

He advised that one should start buliding portfolio as outlook is better than the beginning of 2018.