Articles by Nandini Sanyal

Technology

Sunil Subramaniam: Earnings recovery likely from January quarter; IT stocks may surprise on upside

ETMarkets.com"A weaker rupee could act as a tailwind for IT exporters. In rupee terms, earnings should benefit from depreciation, though constant currency growth will be a key metric to track.” Market expert Sunil Subramaniam expects India’s corporate earnings revival to kick in from January 2026, with the second half of the financial year likely to deliver stronger growth after months of muted performance across key sectors.Speaking to ET Now, Subramaniam said markets are currently in a “wait-and-watch phase”, consolidating after last year’s sharp rally, but the fundamentals are gradually aligning for an earnings-led recovery.“The GST announcement caused a temporary postponement of purchases this quarter. Add to that the global slowdown, particularly in IT and services, and the time it takes for government spending to flow through — all of this means that the recovery will take shape only by the January quarter,” he said.Subramaniam noted that the upcoming festive season sales will likely boost topline growth in consumer-facing sectors, with the impact visible in Q3 FY26 results. “The second half will be much better than the first half,” he added.IT sector in focus: Correction overdone, AI job cuts a smart moveAs the earnings season kicks off with IT majors, Subramaniam said there’s plenty to watch for in the upcoming quarterly updates from TCS, Infosys, and peers.Live EventsYou Might Also Like:Auto stocks offer better valuation comfort than other consumption plays: Shahzad MadonHe believes that the market correction in IT stocks was “overdone”, especially after concerns around the H-1B visa cap in the US.“Last year, India’s top five IT companies together got just 13,000 H-1B visas. Their business models have shifted toward onshore and nearshore delivery. So, the impact is far less severe than the market fears,” he explained.According to him, TCS’s commentary on deal momentum and large-ticket negotiations in the US market will be crucial in setting the tone for the sector.He also pointed out that a weaker rupee could act as a tailwind for IT exporters. “In rupee terms, earnings should benefit from depreciation, though constant currency growth will be a key metric to track,” he added.You Might Also Like:Raamdeo Agrawal on future of Indian market: $32 trillion GDP by 2047, strong credit growth, and a golden era for investorsAI layoffs not a red flag, they’re a realignmentAddressing investor concerns over AI-related job cuts, Subramaniam offered a contrarian view.“Any job rationalization linked to AI adoption is actually a positive sign. It means companies are preparing their workforce for the next phase of technology. It’s smart thinking — not weakness,” he said.He expects companies like TCS and Infosys to ramp up AI hiring from colleges and possibly pursue acquisitions in AI-driven domains to strengthen their future capabilities.Market set for an earnings-led rally in 2026Despite current volatility, Subramaniam remains optimistic about India’s long-term equity outlook.You Might Also Like:Paul Tudor Jones warns market echoes dot-com bubble, what investors need to knowHe believes that while the September-quarter results may stay subdued, the earnings cycle will bottom out soon.“Once earnings pick up and consumption demand rebounds, markets will start reflecting those fundamentals well before Q3 numbers come in,” he said.For investors, he advises a disciplined accumulation strategy — using short-term dips in quality names to build positions ahead of an expected earnings upcycle in 2026.Add as a Reliable and Trusted News Source Add Now! (You can now subscribe to our ETMarkets WhatsApp channel) Read More News oninfosystcsearnings recoveryIT stocksSunil Subramaniam2026 outlookAI job cutsinvesting in IndiaIndian marketsAI revolution (What's moving Sensex and Nifty Track latest market news, stock tips, Budget 2025, Share Market on Budget 2025 and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .) Subscribe to ET Prime and read the Economic Times ePaper Online.and Sensex Today. Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price...moreless (You can now subscribe to our ETMarkets WhatsApp channel)Read More News oninfosystcsearnings recoveryIT stocksSunil Subramaniam2026 outlookAI job cutsinvesting in IndiaIndian marketsAI revolution(What's moving Sensex and Nifty Track latest market news, stock tips, Budget 2025, Share Market on Budget 2025 and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .) Subscribe to ET Prime and read the Economic Times ePaper Online.and Sensex Today. Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price...moreless Prime ExclusivesInvestment IdeasStock Report PlusePaperWealth Edition123View all Stories

Technology

Good time to stay invested; credit growth, consumption revival to drive next rally: George Thomas

ETMarkets.com With the earnings season around the corner, George Thomas, Fund Manager at Quantum AMC, believes Indian equities are entering a phase of renewed optimism — supported by improving credit growth, potential consumption revival, and reasonable valuations after a year of market correction.In an interview with ET Now, Thomas said: “Given that markets have corrected over the last one year and earnings have trended up, the upside potential for investors has improved. From a long-term perspective, it’s a good time to stay invested and even make fresh allocations to equities.”Banking and FMCG show early signs of revivalThomas noted that operational updates from the banking sector were encouraging, with clear evidence of credit growth picking up in recent months.“Banks have reported sequential uptick in credit growth, which was expected. In the FMCG space, the numbers are stable, though a strong revival is yet to show up,” he said.He added that with tax cuts boosting disposable income, consumption could see a meaningful pickup in the near term.Live EventsYou Might Also Like:Q2 earnings beginning this week to be modest but 3 themes can make money: Motilal Oswal“Given the low base of earnings from previous quarters, the upcoming results season should look reasonably positive,” he noted.It’s a great time to add exposure to financials and ITQuantum AMC remains constructive on the financial sector. Thomas revealed that the firm continues to hold high exposure to private sector banks, along with insurance and asset management companies, which benefit from rising savings and formalization of the economy.He also maintained confidence in IT services, noting that valuations have turned more attractive amid recent consolidation.“Our allocations remain large in financials and IT services. We are quite optimistic about these sectors from a two-year forward perspective,” Thomas said.You Might Also Like:Gold shines as dollar weakens amid US shutdown; commodities key hedge: Jonathan SchiesslNew bets: Pharma and logisticsDespite avoiding sector-based positioning, Thomas shared details of two recent stock additions in the Quantum AMC portfolio — a generic pharma company and a logistics firm poised to benefit from India’s infrastructure upgrade.“We’ve added a pharma company that’s facing a drug exclusivity cliff. The market is worried, but we believe its other pipeline drugs will offset that impact,” he explained.On logistics, he added: “We also invested in a logistics company that stands to gain from the commissioning of the Dedicated Freight Corridor (DFC) and growth in containerized rail traffic.”Valuations are reasonable: Stay invested, but be selectiveWhile Indian equities have corrected in the past year, Thomas cautioned investors against sitting on the sidelines.You Might Also Like:Private banks, consumption and metals drive optimism amid earnings season“Markets have built a strong earnings base, and valuations now offer a better risk-reward balance,” he said.However, he advised investors to avoid frothy smallcaps and stick to valuation-conscious funds:“Investors should choose funds that pay attention to valuations — especially in small and midcaps. These funds can reasonably outperform over the next few years.”Global watch: US trade talks remain a key triggerThomas highlighted that global trade negotiations with the US remain a critical factor for short-term market movement.“If trade negotiations conclude positively, we can expect some near-term upside in the Indian market,” he said, but reiterated that long-term fundamentals remain intact.Don’t sit out the marketGeorge Thomas’ message to investors is clear — this is a good time to stay invested.With credit growth improving, consumption rising, and valuations more attractive, the stage is set for India’s next leg of market expansion.“It’s not the time to be on the sidelines. Earnings growth should turn upward from here, and investors who stay patient can see meaningful gains over the next two years,” he concluded.Add as a Reliable and Trusted News Source Add Now! (You can now subscribe to our ETMarkets WhatsApp channel) Read More News onIndian equitiescredit growthconsumption revivalearnings seasonQuantum AMCgeorge thomasPortfoliofinancial sector (What's moving Sensex and Nifty Track latest market news, stock tips, Budget 2025, Share Market on Budget 2025 and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .) Subscribe to ET Prime and read the Economic Times ePaper Online.and Sensex Today. Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price...moreless (You can now subscribe to our ETMarkets WhatsApp channel)Read More News onIndian equitiescredit growthconsumption revivalearnings seasonQuantum AMCgeorge thomasPortfoliofinancial sector(What's moving Sensex and Nifty Track latest market news, stock tips, Budget 2025, Share Market on Budget 2025 and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .) Subscribe to ET Prime and read the Economic Times ePaper Online.and Sensex Today. Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price...moreless Prime ExclusivesInvestment IdeasStock Report PlusePaperWealth Edition123View all Stories