Earnings yet to impress, but September quarter could mark a turnaround: Dipan Mehta

"On the whole very constructive on the market for two reasons. One is that normally monsoon is a great season for stocks and secondly, in a couple of months’ time at the outside you will have clarity on Trump tariffs and that way businesses can start getting back to normal, do their planning in terms of export markets they want to pursue, supply chain changes whatever is required and good monsoon, cut in interest rates, lower TDS on salaries which will start flowing in from May itself, all of these things could lead to a better earnings growth going forward," says Dipan Mehta, Director, Elixir Equities.

There are a lot of news pointers for us to focus on and for markets to focus on, but there is only one word that goes along with Indian markets at this point in time and that has to be resilience.
Dipan Mehta: You are right. Nicely put by you that yes, Indian markets are showing resilience. But look we have seen these kind of events before. So, the uncertainty and the surprise factor is not there and I guess that now it will be business back to usual and whatever has to be done has been done by the government. A fitting reply has been given and rather the market will now focus on earnings and fundamental related news flows and, of course, entire this Trump tariff hangover which is still there which we need to deal with. But at least this particular threat and uncertainty seems to have got resolved for the time being

But also, there is another factor that everyone is watching out for is the fact that what is happening on the tariff front. Now, you have the India-UK FTA as well, a crucial one at that, you have all the stocks actually reacting to that and also the fact that in the next two weeks or so Trump has indicated that he is going to go ahead and sign more trade deals. So, looks like that that sort of a factor also should actually move out of the way, is not it?
Dipan Mehta: That is right. On the whole very constructive on the market for two reasons. One is that normally monsoon is a great season for stocks and secondly, in a couple of months’ time at the outside you will have clarity on Trump tariffs and that way businesses can start getting back to normal, do their planning in terms of export markets they want to pursue, supply chain changes whatever is required and good monsoon, cut in interest rates, lower TDS on salaries which will start flowing in from May itself, all of these things could lead to a better earnings growth going forward. Frankly, so far, I have been a bit disappointed with the earnings which have come through so far, but that may change in the September quarter or so. So, as I said, broadly constructive on the market and all corrections are good opportunities to buy.