Dhiraj Agarwal, MD of Ambit Investment Managers, notes potential for a near-term market bounce after months of decline, but warns of long-term challenges and moderate earnings growth. He emphasizes the importance of selective stock picking focused on valuations rather than sector or thematic strategies, highlighting recent disparities within banking and IT sectors.
Pankaj Pandey highlights that the paint industry is yet to bottom out due to margin pressures and competitive pricing, despite crude price declines. In consumption, themes like hotels and hospitals, and MNC pharma stocks are favored. Caution is urged in aggressive buying, particularly in Reliance and other volatile sectors.
Amazon CEO Andy Jassy is restructuring the company by reducing layers of middle management. This change is to empower employees with more responsibility and increase efficiency. Jassy aims to improve mobility and decision-making. He also intends to increase the ratio of individual contributors to managers. Amazon is firm on its five-day return-to-office mandate despite employee pushback.
Deloitte has told its US tax division employees that office attendance will impact their performance evaluations and bonuses. They are expected to work in person two to three days per week. Other big corporations like Google and PwC are implementing similar attendance policies. This move signals a shift towards stricter in-office work requirements.
The recent underwhelming earnings performance of many small and midcap companies on account of rising costs, weakening demand, and sector-specific headwinds have eroded profitability, leading to earnings downgrades.
