NewKerala.com

Key Points

JP Morgan's latest report highlights India's Communication Services sector as the top performer, with EPS growth projected at 45% in 2025 and 2026. Materials and Industrials follow closely, showing strong upward trends in earnings. While sectors like Utilities and Energy lag, the overall MSCI India index is set for steady growth. Investors should watch Communication Services, Materials, and Industrials for the highest returns.

Key Points: JP Morgan Predicts Strongest EPS Growth for India Communication Services

  • Communication Services leads with 45% EPS growth in 2025-26
  • Materials sector shows 30% EPS rise in 2025
  • Industrials projected at 20% growth
  • Healthcare and Financials also post steady gains
2 min read

India's Communication Services to deliver strongest EPS growth in 2025 and 2026: JP Morgan

JP Morgan forecasts India's Communication Services sector to lead EPS growth at 45% in 2025-26, followed by Materials and Industrials.

"Communication Services is expected to deliver the strongest EPS growth among all sectors. - JP Morgan"

New Delhi, May 13

JP Morgan's latest outlook on MSCI India earnings growth estimates signals a positive trend in sectoral earnings per share (EPS) for 2025 and 2026.

The data, released by the financial major, shows that India's sectoral earnings are set to grow steadily, with some sectors poised to deliver standout performances over the next two years.

According to the JP Morgan chart, Communication Services is expected to deliver the strongest EPS growth among all sectors.

For 2025, the grey bar for this sector touches nearly 45 per cent, and the green bar for 2026 maintains this level, making it the most promising sector in both years.

The previous estimate (grey diamond) for 2025 was slightly higher, showing some moderation, but the outlook still remains solid. Similarly, the 2026 estimate (green diamond) has remained stable, showing consistency in analyst expectations.

Materials is another sector showing significant growth potential. EPS is projected to rise by about 30 per cent in 2025. The estimates have improved compared to projections made three months ago, indicating rising optimism. The Materials sector, with a sector weight of 7.5 per cent in MSCI, could contribute meaningfully to overall earnings growth.

Industrials also show strong performance, with EPS growth of over 20 per cent expected in both 2025 and 2026. While the latest 2026 forecast is slightly lower than the earlier estimate, the 2025 outlook remains firm, represented by stable green and green-diamond markers.

The Financials and Consumer Discretionary sectors follows, with projected EPS growth between 13 per cent and 18 per cent over the next two years.

Healthcare, despite having a smaller index weight of 5.7 per cent, is also expected to post EPS growth of around 10 per cent in both years.

On the other hand, sectors like Utilities, Technology, and Energy are expected to see only low single-digit growth. These sectors remain the laggards in the earnings forecast.

The overall MSCI India index is projected to grow at around 13 per cent in 2025 and 15 per cent in 2026, reflecting a stable macro outlook for Indian corporates.

JP Morgan's projections suggests to keep an eye on Communication Services, Materials, and Industrials, as these sectors are expected to drive India's earnings growth in 2025 and 2026.

- ANI

Share this article:

Reader Comments

R
Rahul K.
This is great news for our economy! Communication sector boom means more digital inclusion and job opportunities. Jio and Airtel have really transformed India's connectivity landscape. Hope this growth trickles down to rural areas too 🇮🇳
P
Priya M.
While the projections look promising, I'm concerned about the telecom sector's sustainability. The price wars have hurt profitability before. Hope companies focus on quality service rather than just subscriber numbers this time.
A
Arjun S.
Materials sector growth at 30% is impressive! With infrastructure projects booming across India, this makes complete sense. Cement, steel companies will benefit big time. Time to review my stock portfolio 😊
S
Sunita R.
Why is healthcare growth projected so low at just 10%? After COVID, we should be investing more in this sector. India has potential to be global healthcare leader if given proper focus.
V
Vikram J.
Good to see stable 13-15% growth projections for overall index. Shows India's economic resilience despite global uncertainties. But wish technology sector was performing better - we need to compete with global tech giants!
N
Neha P.
Consumer discretionary growth at 13-18% shows rising middle class spending power. But hope companies remember to keep products affordable for common people, not just premium segments.

We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.

Leave a Comment

Minimum 50 characters 0/50