Mahesh Patil of ABSL AMC says Indias earnings momentum is set to strengthen as consumption improves, rate cuts trickle in, and FIIs return. While PSU banks remain steady, private banks, autos, consumer discretionary and export-oriented sectors may lead the next market leg. With the rupee stabilising and inflation low, investors can expect a more broad-based market recovery ahead.

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India's Earnings Momentum Set to Strengthen, Says ABSL AMC

Mahesh Patil, a prominent figure at ABSL AMC, has made a bold prediction that India's earnings momentum is poised to gain significant traction in the coming days.

The reasons behind this optimistic forecast are multifaceted.

Improved Consumption: As the Indian economy continues to show signs of recovery, consumption patterns are expected to improve, further fueling the earnings momentum.
Rate Cuts: With the central bank's rate-cutting measures, businesses are likely to benefit from reduced borrowing costs, leading to a surge in earnings.
Return of Foreign Investors: The return of foreign investors (FIIs) is expected to inject much-needed liquidity into the market, further boosting the earnings momentum.

While PSU banks remain steady, Patil predicts that private banks, autos, consumer discretionary, and export-oriented sectors may lead the next market leg.

The rupee's stabilization and low inflation rates have created a conducive environment for a more broad-based market recovery, with investors expecting a more sustainable and inclusive growth trajectory.

Mahesh Patil's prediction highlights the potential for a significant turnaround in India's earnings momentum, making it an exciting time for investors to explore opportunities in the Indian market.