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JPMorgan expects earnings per share growth of Nifty to be around 15%

Updated : September 19, 2018 09:18 AM IST

Nifty's earnings per share(EPS) is likely to see a growth of 15 percent, said Sunil Garg, head of international equity research, JP Morgan.

“MSCI EM index – we have lowered it by about 8 percent. India is an interesting story where it has been a very strong outperformer both in Asian and in emerging market context over the last many months but that started to come under some pressure more recently and I think we do have some reason for caution ... we think the consensus earnings estimates are probably a bit too rich, they are about somewhere between 21 percent and 25 percent for MSCI India or Nifty and we think it is going to be closer to 15 percent," said Garg.

Sector wise, Garg said that financials were still not a very attractive sector in the Indian market. "I think financials have struggled pretty much everywhere globally even in developed markets and that is not one of our preferred sectors. Interestingly, if you look at consumption then the discretionary part and particularly the automobiles have been a lot worse off. So I think there is probably interesting opportunities in sectors like healthcare. That may not necessarily be a domestic consumption story but that has also been a very large underperformer if you take a one-year context and that looks like one of the better opportunities at the moment,” he mentioned.
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