earnings growth: Financials, auto, pharma, and healthcare to drive Q4 earnings: Rahul Bhuskute

Rahul Bhuskute from Bharti AXA Life Insurance believes that the market has shown resilience as it has been bought into despite dips in various sectors and stocks. The recent negativity triggered by comments from AMFI on stress tests of mutual funds and regulator comments on froth in small and midcap stocks seems to be getting digested.

Market valuations are considered comfortable now for investors to get in, with India VIX at a comfortable level. Despite global events such as the rise in the dollar index and crude oil prices, as well as geopolitical risks, the Indian market has continued to show resilience.

The market looks for stability and continuity in policy and economic decisions. As long as there is policy continuity and political stability, the market is expected to look past any disruptions. In terms of earnings growth, sectors like financials, auto, pharma, and healthcare are expected to drive earnings, while IT, FMCG, and BFSI sectors might face challenges.

Looking ahead, the earnings narrative for the coming year is expected to be more challenging due to base effect and rising commodity prices. However, the market is expected to be comfortable with the expected FY26 earnings consensus. Positive surprises may come from the IT and FMCG sectors.