We may see some bigger earnings coming up: Deven Choksey

In a chat with ET Now, Deven Choksey, MD, K R Choksey Securities, shares his views on earnings and the earning outlook.

ET Now: The earnings of IT companies and a couple of banking majors have come out already. What is your take on it?



Deven Choksey: The IT sector has continued to perform better compared to the rest of the pack. There is no doubt about it. The reasons may include the push provided by the appreciating rupee and the influence of larger amount of business inflow coming in from the western world for majors like TCS. These factors have given a kind of a momentum to the IT companies.

On the other side, if you look at the banking stocks — particularly the private banking companies — although results are on expected lines, the growth rate has started tapering off. The likes of HDFC which always used to produce the 30% magic number has now come down to under 25%. So, if you look at it from that perspective, things are looking not as smooth as earnings are concerned in the banking space. I would think that going forward, earnings are likely to remain more or less steady during this particular earning season. We might see some of the bigger earnings coming up, some of them would probably surprise the market a little bit.