Fortis Healthcare reported a 19% revenue growth in its hospital business, driven by acquisitions and brownfield expansions. The company anticipates reaching 70% occupancy within a year and is on track for margin expansion, with hospital EBITDA expected to reach 24-25%.
Indian companies are reporting strong earnings growth. Metals and oil & gas sectors are leading the charge. Even excluding these, growth remains robust. Auto, capital goods, NBFCs, and PSU banks are showing healthy gains. Smallcaps are also recovering. Despite this, market sentiment is cautious, particularly for mid and smallcap stocks. Investors need to be selective.
Fixed income investors should recalibrate strategies as RBI nears the end of its rate-cut cycle. With comfortable liquidity and low rate hike probability, short-term AAA corporate bonds above 7% offer better risk-reward. Accrual-oriented strategies in the short to medium segment are favored over long-duration bets. Potential Bloomberg index inclusion could boost government bonds.
Markets are entering a discerning phase, shifting from narratives to performance. Investors are cautioned against chasing high-P/E small and mid-caps without earnings visibility, as multiple compression is likely. India's medium-term outlook remains constructive, driven by earnings delivery, global liquidity, and FII flows.
