Speaking to CNBC-TV18, Nandan Chakraborty of Axis Capital said the key metric to keep in mind is the price to earnings (PE) and not the earnings per share. He was referring to the earnings forecast in this fiscal year. He added that PE is the one to watch out for in a country. The EPS isn't affected by agriculture. In general food and crude will have to be in a sweet spot. If both their prices are low, then it is a problem for India, he said. PE takes a hit from bigger issues like Brexit and Rexit. He expects earnings growth of 14 percent in FY17 and 21 percent going forward in FY18 largely on the back of a strong economy.
He added that there have been greenshoots or pockets of growth that India has seen over the last year. Identifying pockets that could lead to growth, he ticks off interest rate sensitive stocks like HDFC Bank and Infosys as leading the charge. He also mentioned a few swing stocks like Tata Steel and ONGC .
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