Time correction likely ahead, expect low-to-flat returns in near-term

The pharma and healthcare sectors have consistently delivered strong earnings, outperforming expectations

Earnings will be the primary driver for the equity market and any further slowdown could result in an extended period of consolidation, according to Rahul Singh, chief investment officer (CIO)-equities, Tata Asset Management. In an email interaction with Abhishek Kumar, Singh says that as the FY 2025 nears its end, the focus will soon shift to FY 2026 earnings estimates. Edited Excerpts:

 

Corrections in the recent past were fairly short-lived. However, this time it seems more prolonged. What has changed structurally? Has the correction provided valuation comfort? 

 

The volatility is the result of several factors, from China's economic stimulus measures