What is the story about?
Indian equity markets are expected to open the week cautiously, with investors increasingly looking beyond headline earnings to forward guidance from key
sectors, market expert Nischal Maheshwari said, citing improving visibility in banking but muted outlooks elsewhere. “There were banking and IT results predominantly, and Reliance,” Maheshwari said. “It has been as expected or below expectations and without much visibility going forward. There is no positive visibility for most of the IT results which have been declared till now.”
Banks signal growth despite one-offs
Maheshwari said banking earnings were largely strong, barring one-time provisions linked to priority sector lending (PSL) norms at ICICI Bank and HDFC Bank. “Otherwise, I think the results were better and their outlook also, both of them guided that they are seeing strong visibility of growth,” he said.He added that large private banks look attractive after a prolonged period of underperformance. “Both of them have not really done much in the last one, one-and-a-half years, and that’s why the valuations are looking attractive,” Maheshwari said. He expects net interest margins to improve further. “The NIM profile has improved for both of them and I continue to see that it will continue to improve as you go into FY27.”
Smaller banks maintain momentum
On broader banking trends, Maheshwari said smaller private banks and PSU lenders are currently delivering better numbers. “At the moment these guys are doing better in terms of numbers, and there is momentum,” he said, adding that favourable valuations support continued outperformance in the near term.Metals rally may extend in short term
Metal stocks, which have rallied sharply over the past quarter, could see further upside in the short term, though Maheshwari urged caution. “Metals have been on a tearing rally for the last one quarter and at least in the short term this will continue,” he said.However, he flagged uncertainty around demand. “We have to see whether it is backed by ground demand or more money chasing assets,” Maheshwari said, noting that China’s manufacturing recovery remains uneven.
Real estate demand intact despite valuations
Despite weaker earnings from Sobha, Maheshwari said real estate demand remains strong across major cities. “Order booking and deliveries have been very strong in Mumbai, Bengaluru and Delhi,” he said, adding that stock corrections reflect stretched valuations rather than weakening fundamentals.Banking, metals, NBFCs seen leading in 2026
Looking ahead, Maheshwari said banking remains a key focus. “In the first one or two quarters, it should be PSU banks, and then larger private sector banks will catch up,” he said. He also expects metals to “surprise everybody on the upside” and sees a broader recovery across NBFCs as borrowing costs decline and credit quality remains benign.(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money-related decisions.)
