EMS, telecom, industrial sectors seen having robust growth potential

Sectors such as EMS, telecom, industrials and retail are expected to deliver stronger earnings growth over the next two years, supported by improving macroeconomic conditions, according to a report by Antique. The report stated this by highlighting a point that corporate earnings are positively correlated with the Wholesale Price Index (WPI) and nominal GDP growth. Both these key macro parameters are expected to normalise in FY27, which is likely to create a more supportive environment for corporate profitability. Overall, the report suggests that with WPI and nominal GDP growth expected to normalise in FY27, the corporate earnings outlook is set to improve meaningfully. The projected acceleration in Nifty 50 earnings growth over FY26-28 reflects this improving macro backdrop, even as sectoral performance is expected to remain mixed, as per a report.

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