The results season ended without much excitement. The markets lost interest in the results season as the Adani group related thoughts dominated mindshare. Companies also seem to be avoiding the market glare while announcing results.
The companies preferred to keep things quiet, gradually lower Market expectations, reset future guidance and keep hype as soft as possible. Obviously, the markets are unlikely to sit up and take active notice of things. This explains why the end of the result season was boring and uneventful. But, this is a good time to look closer at market opportunities.
Progressively, the market will lower its expectations with every quarter. As the expectations dip, companies will see lower pressure to deliver outperformance. That itself will set companies up towards making outperformance happen. Companies will move forward, grow steadily, create business outperformance and start positively surprising markets. This onward march usually happens over multiple quarters.
The third quarter of this financial year is probably the earliest sign of this move. Investors must observe this trend closely, learn to read the pattern of performance and look for signals of outperformance. The coming quarters will give investors a lot to chew upon, much to learn and enough to action.
