The growth of a part of the Indian economy, indices and its earnings depends on the US because most of the country’s exports are currently to the US. Therefore, that part definitely will have some impact if there is a recession or sharp slowdown in the US markets, says Shreyash Devalkar, Head-Equity at Axis Mutual Fund.

Being cautious such impacts on the exports, he said;  “It may be IT services or capital goods sectors or even auto ancillary exports,” he said.

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Regarding opportunity, he believes the industrials and the capital goods part of the economy continue to deliver good numbers (sales and growth) for almost the last 14-15 quarters.

Three segments of the market have not seen substantial rerating are fast moving consumer goods (FMCG), private sector banks and IT.

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One needs to identify opportunities among these sectors, he said.

Speaking about results season, Devalkar mentioned that though the earnings growth this season is in line, it lacks broad-based upgrades and this remains a more fundamental challenge.

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