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Below the Quote on Market by Krishna Appala, Sr. Research Analyst, Capitalmind Research

“The markets are inching closer to all-time highs, with the Nifty 50 gaining 1.2% this week. As we wrap up the Q1 earnings season, the results offer an overall positive picture. While headline numbers indicate modest revenue growth of 6.6% and 5% in PAT, a deeper analysis reveals healthier figures when excluding the drag from oil marketing companies. Key sectors like Pharma, FMCG, and IT are beginning to show signs of recovery, setting the stage for what could be a solid FY25.
Nifty 50 Q1 earnings might appear subdued at first glance, but excluding the impact of OMCs, the median performance paints a much brighter picture. The index shows a 9% revenue median growth and an impressive 13.1% median PAT growth. This is a decent start for FY25, and we expect a full-year earnings growth of 13%, driven by a revival in sectors such as IT, Pharma, and FMCG.
The Pharma sector, in particular, is showing encouraging momentum, supported by strong global demand and favourable valuations. API and CDMO players are seeing margins stabilize as demand increases. Meanwhile, in the Agrochemical sector, industry leaders believe that the worst of the volume declines is behind them. They expect growth to pick up in the coming years, although pricing pressures are likely to persist throughout the year. Despite these challenges, the overall outlook for global innovators in the sector remains positive, signalling a potential recovery on the horizon.”

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