ET Now spoke to Aman Chowhan from Abakkus Asset Manager on earnings risks, crude oil, and sector positioning in the current market environment.
Aman Chowhan said monsoon concerns are not a major risk for earnings at this stage, but crude oil remains the dominant macro variable. He noted that even in a scenario where geopolitical tensions ease, oil prices could remain elevated, keeping pressure on corporate earnings. “Monsoon is not a big worry. A weak monsoon may have some impact. The bigger issue is crude oil. Even if there is a deal with Iran, oil can stay around 80. That is the real risk.” He added that the impact of higher oil prices is likely to show up more clearly in upcoming quarters. “March quarter was fine due to inventory. June will show the impact. We see a 100–200 bps hit from higher oil prices.”
