Lack of pick-up in investment cycle is a reason to worry: Gautam Duggad

We expect 26% earnings growth in FY20 for Nifty firms, says Gautam Duggad

Nifty earnings growth for 2018-19 has been lowered to 9 per cent. And, revival in the banking sector, which is set to drive earnings in 2019-20, can help achieve this target, says Gautam Duggad, head of research, Motilal Oswal Institutional Equities. During the brokerage’s investor conference, Duggad told Samie Modak that earnings recovery and politics remain key concerns for investors. Edited excerpts:

How was the December quarter for India Inc? What were the key takeaways?

December quarter earnings were in line with expectations both for Nifty firms as well as those in our coverage sphere. Nifty firms posted 6 per cent profit