Sectors That Emkay Global Expects To Deliver ‘Positive’ Upticks In Stock Markets
With the Q2 results in sight, here are the main themes that Emkay Global is betting on.
Investors should use July-September earnings to assess how companies performed after the coronavirus lockdown and then hunt for sector-specific themes.
That’s according to Krishna Kumar Karwa, managing director at Emkay Global. “There will be lots of positive surprise coming up in IT companies, building material segments, pharmaceuticals, auto ancillaries and real estate,” he told BloombergQuint during an interaction.
Karwa said Emkay Global is very optimistic about a recovery in the IT sector, one that might even “startle” investors in the second quarter. Even the growth prospects for IT in the coming year may be a surprise, he said.
On pharmaceutical stocks, Karwa said that while a lot of the upside may have been priced in already due to the pandemic, there will still be stock-specific stories up for grabs. There could also be some consolidation in the sector which may be another trigger for the stocks, he said.
Karwe said he will be keenly looking at the commentary by a company’s management for the next two-three quarters to get a sense of its recovery. “Investors are very keen to look at how the earnings growth is panning out, how the recovery is panning out and what is the guidance about getting back to normal.”
Watch the full interview with Emkay’s Krishna Kumar Karwa here: