More steam left in markets

Financials, energy, industrials and materials could be the next growth sectors

In a recently published interview, Prashant Jain, chief investment officer, HDFC Mutual Fund, said the Indian market had a six-to-eight year cycle. Stocks and sectors which fall out of favour in one cycle become leaders in the next. Looking at the third quarter (Q3) results (the interview happened before the fourth quarter  or Q4 results), Jain said the earnings trends fitted, with laggards becoming leaders in the next cycle.  

Profit growth in Q3 was largely contributed by financials, energy, industrials and materials. The perennials — fast-moving consumer goods and pharmaceuticals — had negative or minimal contribution. The Q4 results