BFSI, Auto Space To Drive Q4FY23 Earnings Growth

Mumbai
Nifty50 is estimated to see a healthy 14 percent earnings growth for Q4FY23 despite a challenging global context, marked by a banking crisis in the West, macro slowdown in India, and FII outflows, said Guatam Duggad, Head of Research, Motilal Oswal Financial Service Ltd (MOFSL), in an exclusive conversation with Moneycontrol. This growth is led by just two sectors, financials and auto. Within these sectors, a few heavyweight stocks like SBI, ICICI Bank, Tata Motors, and ONGC are doing the work. Duggad expects earnings growth to be fuelled by the banking, financial services and insurance (BFSI) and auto sectors, which are likely to rise 37 percent and 70 percent on a year-on-year (YoY) basis, respectively. Similarly, within Nifty, SBI, ICICI Bank, ONGC, Tata Motors, and BPCL are likely to contribute 82 percent to the incremental YoY accretion in earnings, he said. He said that a narrow growth focus has led to a 1.5-2 percent earnings downgrade for FY24 and FY25, with the EPS revised down from 990-odd levels to 978. This growth is expected to face volatility in the coming months.