The third quarter (Q3) earnings season reflected moderate corporate performance, marking the third consecutive quarter of single-digit earnings growth. BFSI, PSU banks lead the earnings cycle, growing 11 per cent YoY, with PSU banks outpacing private lenders due to lower credit costs and better asset quality. Healthcare and IT continue to offer structural growth opportunities, while Capital Goods and Real Estate benefit from infrastructure and housing demand. Disciplined asset allocation to define success in months ahead; Nifty-50 reported 5 per cent PAT growth, aligning with expectations but significantly weaker than the 20 per cent+ CAGR seen between FY20-24, said Motilal Oswal Financial Services. The market is facing high valuations, slowing earnings growth, and volatility across key sectors, requiring a disciplined and resilient approach to portfolio construction, said the report. The report mentioned that a mix of large caps and select high-growth midcaps will provide both stability and upside potential, it added.
