Financial statements to real estate: Here's what LGT Wealth's Lokapriya expects for the Indian stock market

Markets are trading at 19-20x FY27 earnings, reflecting the increased valuations. Consensus expectations indicate 6-8% earnings growth in FY26 and a sharper 14-16% in FY27, with the latter dependent on the removal of the additional 25% US tariff (which returns the total tariff to 25%). Sector-way Comment Communication Services: Telecom operators have reported a steady performance, supported by ARPU growth and broadband momentum, even if mobile subscriber supplements have delayed. The risks continue to increase due to the balance sheet stress in the industry and the uneven capacity for capital investment. On the media side, cinema operators delivered inline results, with the profitability expected to return in the coming quarters. However, regulatory risks such as the price of tickets at the state level can challenge premium pricing strategies. Consumer Discresionary: Car businesses have benefited from premiumization and price discipline, although softer volumes and cost pressure have limited the overall margins. Management commentary indicates a positive prospect for two -wheelers, passenger vehicles and tractors, while the commercial vehicles are expected to remain subdued. Policy support, such as potential GST reduction, can stimulate demand. In retail, demand was poor due to seasonal factors and the impact of early molons. Despite slower growth, clothing and jewelry segments managed the resilience, while value retailers and fast service restaurants experienced the pressure of the margin of poorer productivity. Shoe and electronic categories have also seen a subdued question. The upcoming festive season could give a temporary boost. Consumer staples: FMCG businesses have reported modest urban recovery, along with a relatively stronger rural demand. Sector revenue increased by about 6%, although profitability was contracted due to the pressure of raw material supply, which led to margin compression. Earnings are more outspoken in the categories for food and personal care. The margin pressure is likely to continue through the first half of FY26, but it will be relieved in the second half, which supports stronger earnings growth. Financial statements: Banks provided modest earnings, with institutions capable, better than peers, although total loan growth has delayed and contracted margins. Asset quality remained broadly stable, but bags of stress emerged in MSME and unsecured retail loans. Non-bank lenders have underperformed amid growth and quality of asset quality. In insurance, life players had a steady traditional operating growth, but the expectations of profitability missed, while players who are not life showed stronger trends. In general, the estimate of sector earnings has recently dropped by ~ 4%, with the margins expected in the second quarter. Healthcare: Pharmaceutical products have seen weaker growth due to price pressure in international markets, while domestic formulations have remained stable. Hospitals have continued to produce strong growth, despite the attire of new capacity supplements, and diagnostics benefited from the demand for well -being and network expansion. Industrials: The capital goods segment had a strong quarter, led by demand into power and steady international inflows, although the private captex dampened. Some sub-sectors provided earnings surprises, while others had the pressure of the margin. The construction of the road was weaker due to low -order and weather disorders, but improved the tender pipeline. Electrical products have shown mixed results, with strong growth in cables and wires that contrast with subdued performance in other categories. Information Technology: The sector had a subdued quarter, with a minor income contraction despite the seasonally strong period. Mid-level firms fared better than larger peers, although cost pressure was weighed on the margins. The transaction activity remained healthy, reflecting the underlying resilience, but management guidance remained careful due to limited visibility. Material: Steel producers have seen a successive improvement in profitability per tonne, supported by favorable raw material trends, although falling steel prices in the second quarter are expected to print margins. Cement businesses have reported a strong profitability growth as realizations were strengthened during a seasonally poor quarter. A potential GST reduction can further increase the demand for medium term. Property: The sector has recorded strong growth in the year-on-year before sales, powered by new project launches. However, broader operational data indicates the demand -modernization in FY26. Market leadership continues to consolidate against larger, well -capitalized developers. Aid programs: City Gas businesses have experienced the pressure of the margin due to reduced access to lower cost domestic gas, although volume growth partly compensates the impact. Power Utilities reported mixed performance, while investing in energy transition supported profitability despite execution challenges. The author, Chakri Vokapriya, is the CIO shares of LGT Wealth India. Disclaimer: The views and recommendations above are those of individual analysts or brokerage companies, and not of currency. We advise investors to check with certified experts before making investment decisions.