Sectors such as jewellery, real estate and dependent industries like banks with higher realty exposure, cement and metal may see depressed earnings in the medium term.
Oil India’s forecasted earnings may be pared by 6.2% and 6.5% to Rs 33.6 and Rs 35.4 by similar comparison.
The company earns 60% revenue by selling power tillers, 37% from tractors and the remaining from rice transplants.
Market participants are likely to see the GST as a crucial tax reform, rather than a demand booster for many consumer discretionary products.
Bajaj Auto is set to post higher volume growth at a time when its peers are likely to see sluggish performance due to elevated inventory in the first half. The street is pricing in domestic volume growth of 12-13% for the current fiscal year for Bajaj.
The company is promoted by IL&FS which owns 26.37% equity. Other big shareholders are Noida authority, and Fidelity International, according to Bloomberg data.
The average interest rate is likely to come down after the debt refinancing at an attractive rate by using instruments such as masala bonds and US bonds of 10-year maturity.
Since 2013, the total market capitalisation of the Tata group companies outperformed the market by 2%. It increased to 15.1% annually in the past three years.
The combination of refinery and petrochemicals as its core operation helped the company to offset cyclical correction and maintain consistency in earnings growth.
The MSCI India posted a return of 0.7% in the past one year, while the other benchmark rose in the range of 4 to 13% in dollar terms in the same period.
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