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    Optimistic on earnings growth for FY19 and FY20, double overweight on pharma, says CLSA

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    Optimistic on earnings growth for FY19 and FY20, double overweight on pharma, says CLSA

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    The house is optimistic on earnings growth in India for FY19 and FY20 and double overweight on pharma sector, said Mahesh Nandurkar, India Strategist, CLSA.

    The house is optimistic on earnings growth in India for FY19 and FY20 and double overweight on pharma sector, said Mahesh Nandurkar, India Strategist, CLSA.
    Speaking to CNBC-TV18, Nandurkar said the risk for the market going forward is more to the downside than upside, which was the view even few months back.
    Moreover, over the next 12 months, we will also be faced with tightening global liquidity as a board trend, which could be negative for emerging markets and Indian equities, he said.
    However, this does not mean we will see a global meltdown, but from a risk-reward perspective with valuation multiples being at an elevated levels, it does not make a good case for equity markets, said Nandurkar.
    According to Nandurkar, the house expects the Nifty to remain flat by December-end and would be happy if it remained at current levels.
    Sector specific, he said within the fast-moving consumer goods (FMCG)
    sector or consumer staples, they would look at pockets that offer value and tobacco is one such sector, where valuations are reasonable.
    The house is a bit cautious on cement because volume growth is not the driver for them but it's prices, which are not expected to hike due to monsoon and upcoming elections, said Nadurkar.
    However, from long-term perspective, the sector looks attractive, he added.
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