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Earnings to be good across sectors, says Aditya Birla Sun Life AMC

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Mahesh Patil, Co-Chief Investment Officer, Aditya Birla Sun Life AMC said the consumer pack should be very good led by growth in rural consumption, which was evident in HUL numbers. By and large expect good earnings across sectors this year.

Mahesh Patil, Co-Chief Investment Officer, Aditya Birla Sun Life AMC said the consumer pack should be very good led by growth in rural consumption, which was evident in HUL numbers. By and large expect good earnings across sectors this year.
It has been a 40-50 percent fall than what we had in the previous year, he added.
With regards to the market per se, he said," The indices are at all-time highs but the breadth of the market is bad and that is reflected in the mid and smallcap indices which are down 15-20 odd percent. It will not be a big V-shaped recovery for the market but earnings growth is picking up."
So, if one is looking at stocks in mid and small cap space, one must stick to quality, said Patil.
"Consumer stocks have done well but one could see some time correction because valuations in the space ran ahead of expectations," said Patil.
Talking about corporate lenders he said they might see more clean-up this year. Provisions for them would be higher as well, he said.
“So, if one is willing to overlook this fiscal year and take a three-year view, some of the private corporate banks could be an interesting place to look at,” he said.
Moreover, the capex cycle is also showing early signs of recovery, said Patil.
The strategy would be to stock specific while trading the market this fiscal year, said Patil.