On the earnings outlook, Tandon expects a slightly subdued season, but believes the market has already priced in most of the weakness. “Most companies will report slightly subdued numbers, but the market already knows this,” he said. He added that large sectors such as energy and metals are relatively predictable, while chemicals remain harder to assess at a granular level. Among the positives, he highlighted textiles, particularly cotton textiles, saying, “textiles could do well due to margin support.”
Speaking on Maruti Suzuki, he flagged structural concerns arising from shifting consumer preferences. He said the company’s weak SUV portfolio remains a key challenge as demand moves toward higher-end vehicles. “The challenge is their weak SUV portfolio, while demand is shifting toward SUVs,” he noted, adding that exports may need to play a larger role in offsetting domestic pressure.
On the monsoon outlook, Tandon said the impact is a concern but not the dominant macro driver anymore, as government support schemes are helping cushion rural stress. “Monsoon is a concern, but government support is helping cushion the impact,” he said, while emphasizing that demand trends matter more than rainfall itself. “The bigger factor is demand. Rural consumption can still remain reasonably strong with support measures,” he added.
Regarding recent leadership reshuffles in the banking sector, he downplayed their significance for investors. “It is interesting, but not very material for investors,” he said, explaining that operational performance is driven more by treasury functions than top-level finance roles. He also pointed out that regulatory norms have become stricter, ensuring greater transparency in asset quality reporting.
On the broader banking sector, Tandon maintained a clear preference for private banks over PSU lenders, with the exception of SBI. “I have no great favourites among PSU banks other than SBI,” he said. He added that private banks tend to benefit more in tighter liquidity environments and continue to enjoy stronger depositor preference. “PSU banks are improving, but they still struggle to be the preferred choice for large savers,” he concluded.Overall, the commentary suggests a market environment that remains stable but increasingly selective, where valuations, sector rotation, and demand sustainability are likely to drive performance more than broad-based earnings surprises.
