With regards to earnings expectations, Patil said: "Earnings remain the joker in the pack. Market is expecting strong earnings growth in FY20 but Q3 FY19 is expected to be weak and so one would have to focus on downgrades."
Mahesh Patil, co-chief investment officer at Aditya Birla Sun Life AMC, spoke to CNBC-TV18 about third-quarter earnings expectations and outlook for the equities going forward.
Talking about the risks looming on the domestic market, he said, "On global front, if the US continues to hike rates then it could impact flows into our market. Crude prices could also be a risk if they move up. However, the chances of crude oil prices going beyond $70-75/bbl are slim".
"Election outcome may not pose to be a serious threat for market because the big reforms have already been done and new government would go through with them although there could be some volatility around the election time."
With regards to earnings expectations, Patil said: "Earnings remain the joker in the pack. Market is expecting strong earnings growth in FY20 but Q3 FY19 is expected to be weak and so one would have to focus on downgrades."
Talking about the NBFC space, he said: "The liquidity scare has subsided and it has started coming back into the system. In this quarter and next there one could see considerable slowdown in loan growth for some housing companies but not the tier I, tier II companies. By March end expect the liquidity position to normalise".
Source: CNBC-TV18
