Never miss a story

Get subscribed to our newsletter


×
Earnings recovery going forward will likely provide cushion for valuations. Pixabay

Corporate earnings recovery will likely provide a cushion for valuations in 2021, Motilal Oswal Private Wealth Management said in its 2020 year-ender note. It pointed out that earnings growth over the last few years has remained subdued on account of structural reforms such as GST, IBC, and RERA.

“With Corporate India deleveraging its balance sheet by a considerable extent over the last few years, and with financial system (particularly PSU banks) already at high provision coverage, the corporate earning profit-to-GDP ratio in India should start inching upwards steadily from its current decadal lows over the next few quarters,” the note said.


Follow NewsGram on Instagram to keep yourself updated.

“Hence, while our ‘Temperature Gauge Index’ for equities indicates that Large Cap valuations are inexpensive zone, earnings recovery going forward will likely provide cushion for valuations. The broader market still offers a lot of attractive investment opportunities.”


Domestic earnings season saw a ‘bumper harvest’. Pixabay

According to the note, the Q2FY20 domestic earnings season saw a ‘bumper harvest’ with the majority of companies beating estimates. “Cost optimization during the lockdown phase has been one of the main reasons for the growth in profits apart from demand recovery,” the note said.

ALSO READ: 7 Effective Strategies For Achieving Success In Your Brand Building

“Managements across sectors are talking about continued recovery in the upcoming quarter due to the festive season and pent up demand. BFSI sector has delivered strong earnings with large private banks indicating lower than expected stress on their loan books. The Healthcare sector has also delivered double-digit returns in this quarter. After many years, analysts are finally considering a positive upgrade in Nifty50 earnings.”

Besides, the note expects an extended period of low yields on the back of RBI’s maintenance of its accommodative stance while emphasizing the importance of economic growth over inflation. “Relaxation of the prevailing inflation targeting mechanism is also being discussed with the Govt… It would be prudent to follow a barbell portfolio approach.” “Gold should continue to remain part of portfolio allocation, predominantly as a hedge against heightened volatility.” (IANS)


Popular

CNN

Doris Lessing who won a Nobel Prize in Literature

London (CNN)- At five o'clock in the morning, the esteemed 86-year-old astrophysicist Jim Peebles was woken suddenly by the telephone ringing.

"In previous experience, the only phone calls at that time of night are bad news," he said. This one was great news. "The opening sentence from the caller was: 'The Nobel committee has voted to award you the Nobel Prize in Physics. Do you accept?'" Peebles recalled. The wording threw him. Who wouldn't accept a Nobel Prize? "You know the Bob Dylan fiasco?" he said during a phone interview with CNN. "That might have put the wind up them."The "fiasco" Peebles mentions refers to the 2016 Nobel Prize in Literature, which was controversially given to an utterly unimpressed Dylan.Aside from being ever-presents on college campuses in the 1960s, little connects Peebles, an expert in theoretical cosmology, with Dylan. But one of the starkest contrasts might lie in their reactions to winning a Nobel -- and the songwriter is far from the only laureate whose crowning turned out to be an awkward affair.

The five committees are notoriously secretive, fiercely shielding their choices from the outside world -- including the laureates themselves, who are told of their victories just minutes before they are announced to the public.

Keep Reading Show less
Wikimedia Commons

Sindoor implies the longevity of a woman's marriage to her husband in the Hindu tradition

Married Hindu women are recognised by a red streak of vermillion in the middle of their foreheads. This is traditionally called 'sindoor', which is derived from the Sanskrit word sindura, meaning 'red lead.'. Sindoor is traditionally powdered turmeric and lime, sometimes red saffron, or red sandalwood. It is also called vermilion, or Kumkum.

Vermilion powder mixed on a plate Sindoor is traditionally powdered turmeric and lime, sometimes red saffron, or red sandalwood. It is also called vermilion, or Kumkum. Image source: Photo by Gayathri Malhotra on Unsplash

Keep Reading Show less
Wikimedia Commons

Actress Urvashi Rautela has recently announced the name of her next film which is titled 'Dil Hai Gray'.

Actress Urvashi Rautela has recently announced the name of her next film which is titled 'Dil Hai Gray'. It's a Hindi remake of Tamil film 'Thiruttu Payale 2'. Urvashi Rautela will be seen alongside Vineet Kumar Singh and Akshay Oberoi.

Urvashi shares: "I am excited to announce the title of my next film 'Dil Hai Gray' on the auspicious day of Vijaya Dashami. The film is very close to my heart and it was lovely working with director Susi Ganeshan sir, producer M Ramesh Reddy sir, and my co-stars Vineet Kumar Singh and Akshay Oberoi. "

"The film has created a massive response in the south industry and I am very positive about the story that it will be also be loved by the audience here. I hope my fans would bless us with their love and support. Super excited to watch my film on the big screen after a long time," she concludes. (IANS/ MBI)


Keep reading... Show less