Sideways movement on market seen for 3 months; bet on consumption theme: Max Life

The June quarter earnings cycle is about to end soon. The Street will watch out for cues from the quarter and will set the course for it going forward.

So, how has India Inc performed? Have the earnings improved or is there a big dip? Max Life Insurance believes that the performance overall was a disappointment. “It wasn’t unexpected. It was seen to be better on the margin front, but even that is not taking place,” Mihir Vora, Director & CIO, Max Life Insurance told CNBC-TV18 in an interview. The second half of this fiscal could see earnings growth of 15 percent year-on-year. In the first half of the current fiscal, earnings growth could more largely be in a single-digit number.

Further, he explained, that given these valuations against the earnings visibility, the market is taking a breather and that is happening right now, he told the channel.

Speaking on the market’s movement ahead, he expects a sideways movement in the next three months. “No big up move is seen currently,” he told the channel.

Among sectors, Vora believes pharma is interesting. Though results are not supporting, there are good companies and issues will be resolved.

He also likes consumption theme due to multiple factors of execution on infra side, FMCG as a bet on rural growth and good monsoon and seventh pay commission.