The buoyancy and confidence seen in companies during the last earnings season is expected to continue going forward, said Tushar Pradhan, CIO-India, HSBC Global AMC.
He, however, said the macros were turning out to be worse than expected. He said the trade war and its ramifications along with disruptions led by sanctions in Iran are leading to global uncertainty.
“Macros do have an element to where markets move in short-term but if you are long-term investor then positive sides are continuing growth in earnings and sustainable economic upturn that we can see forming in next few months in India," said Pradhan.
Sector specific, he said the IT sector in India is getting a strong tailwind from rupee depreciation and gaining on back of better sentiment in the US market.
Metals have gone through a cycle and the Indian metal manufacturers or material sector benefit from weaker rupee because most of the global metals are indexed to LME prices, which are dollar denominated.
"So if they have their debts and costs under control, they will benefit and make better margins and that is the hidden part of Indian economy which also benefits out of lower rupee," said Pradhan.