According to him, the actual momentum of income is likely to hold the second half of FY26, which is expected by Q2 to mark the bottom. Up to that, markets can appear limited content while they wait for new triggers to go out.
Edited quotations from a chat:
Do you think the earnings period is better for middle and smaller smaller than agrecaps? Is that the reason behind the outperformance in the wider market?
Sneha Poddar: It is difficult to determine exactly, but the stock performance-is made in some pockets in which numbers are better than expected. Widespread speaking, compared to better, the wider market made better. There are many reasons – the general need is not weak as fear, and companies are trying to improve income. Even the raw material price remains strong.
Price pressure is not as visible, which helps with metal outperform metal companies. Overall, the need is determined, and earnings are better than expected.
Stock reaction is influenced by more than earnings. Previously, the sentiments were negative in the room and around the world, but the backdrop now became positive. After a sharp correction, a pullback is expected.
There is a look at the market we can pass a period of time correction. Price change occurred, but time correction lasts a long time. Do you agree?
Sneha Poddar: Yes, I believe it will last longer. Most healing should happen to be done. From here, there is limited upwards, and the market is likely to consolidate until new triggers arise – and that will take time. While earnings are better, H1FY26 is expected to remain the same lines. Most from H2 we look forward to the base effect of the kick, which leads to the most powerful fixing numbers.
Regarding trading war, most likely to continue for at least three more months. Bilateral deals have not been reached. Things will take time to settle down, and that’s why the time correction time will continue. Expected the market together around the current level.
Up to earnings of earnings, do you think from FY26, things will develop due to the base effect of a weak fy25?
Sneha Poddar: Yes, Q1 is expected to be similar to Q4. After Q2, we might see a bottom, and from there, recovery should start. However, the main growth is likely to appear in H2.
In Q1, do you expect the wave of downgrades, especially at the end of the past three quarters but less than Q4 – to stop?
Sneha Poddar: Hope, yes. If you look at the trends of the world, China’s economy shows some progress, and government support through stimulus measures helped improve the situation. Tariff war appears needed today. Otherwise companies need to change their logistics methods and find new markets, which can disturb their full cost structure.
So from that sight, no one has changed changed for companies. We believe that the upgrade downgrade ratio will remain more or less stable.
