As the earnings season draws to a close, the pace of heavyweights coming out with their quarterlies has reduced to a trickle. Only a small portion of the conversation in the studio revolved around results even as macro happenings take precedence. Here are some bytes:

Mrinalini: There don't seem to be many positive surprises from the large-caps this season. Of course, neither have there been too many bombshells.

Madhukar: Yeah… Bharti Airtel's topline growth was above market estimates, while the bottom-line was below anticipated levels. Yet the market reaction wasn't too frenzied with the stock just reacting mildly negatively. Perhaps stabilising of key operational indicators worked in its favour.

Mrinalini: What a relief it was when US lawmakers finally reached an agreement to raise the country's debt limit and also simultaneously reduce deficit1 It at least reduces a chance of default on the nation's loans. Of course, some expect the dollar to weaken.

Madhukar: Yup. It is also not going to be easy to cut as much as $2-3 trillion, even if it is over a 10-year period. For an economy where recovery has hardly taken any meaningful shape, less government spending may bring in new challenges.

Mrinalini: Back home, as fuel costs and interest rates soared, car sales took a nosedive. But two-wheelers still continue to have a smooth ride.

Madhukar: True. Maruti, Tata Motors and Hyundai have seen their July sales dip 11-38 per cent over last year. But the two-wheeler manufacturers such as TVS Motor, Hero and HMSI have registered a 10-15 per cent rise.

Mrinalini: But cement sales have been robust with players such as ACC, Ambuja and Ultratech seeing their despatches in July go up anywhere between 8-28 per cent on strong rural demand.

Madhukar: It is hard to get an overall sense of the economy with all these mixed data points. But many economists, especially overseas ones, have predicted a slower pace of growth with some pegging it as low as 7.5 per cent.

Mrinalini: But the week ended on a horrible note, what with a bloodbath in the US markets. Our own bourses too fell off a cliff.

Madhukar: What else can we expect? Weak cues from the US and Europe took its toll. But things have gone from bad to worse! The US has had a debt ratings downgrade from AAA to AA+ on Friday evening, its first in 95 years. So keep your fingers crossed, for we may just have to grin and bear the pain ahead.

Related Topics
comment COMMENT NOW