According to Nimesh Chandan, the Chief Investment Officer at Bajaj Finserv AMC, there may be a small downgrade in FY27 earnings estimates, but FY28 estimates may not be affected much. He noted that every passing week beyond this quarter that the war continues will further put pressure on earnings. Chandan sees some risk to inflation and economic growth numbers, but considers this likely to be transitory. He views it as a speed bump in the otherwise healthy long-term trajectory of the country.
Chandan is positive on the energy sector, stating that both coal-related and renewable energy stocks are part of their investment universe. He mentioned that Indian equity markets outperformed other emerging markets by more than 60 percent between 2020 and the peak in September 2024, but faced challenges leading to earnings downgrades. Despite this, he expects favorable FII flows in the coming year.
Chandan is currently underweight in the IT sector, closely monitoring developments in AI and concerns about a slowdown in the US economy.
