Sensex earnings to grow 16 pc in FY08, says report

Mumbai, Apr 6 (UNI) Mumbai-based financial service firm Motilal Oswal, in its research report, has predicted a 16 per cent growth in Sensex earnings in the next financial year on a high base of 33.3 per cent growth this year.

The report, released yesterday, indicated an estimated growth rate of 33.3 per cent for Sensex in the fourth quarter of the current financial year, a strong revenue growth of 22.3 per cent and a EBITDA growth of 26.1 per cent.

It attributed the 16 per cent returns delivered in the current financial year to major stocks that claimed a weightage of 38 per cent in the Sensex.

Meanwhile, the inflation rates are expected to come down around 5 to 5.5 per cent in the approaching months and the stability in interest rates will enable the market to bounce back, the report said.

The hike in rates will be palpable on sectors like mortgages and cars. The mortgage rates is expected to slow down from 30 per cent to 20 per cent in the months ahead while in the auto segment, where the two-wheelers have already witnessed a commendable slowdown, the four wheelers are yet to be affected by the impact.

The report recommends investors to raise exposure to pharma sector where Cipla and Ranbaxy are spotted as top bets.

UNI