Will Q3 earnings finally end 6 quarters of pain? 70 stocks to watch out for now

Core Viewpoint - The Q3FY26 earnings season is expected to show significant profit growth, with brokerages divided on whether this indicates a sustained recovery or a temporary improvement [11] Earnings Projections - Emkay Global projects a 14.5% PAT growth driven by festive season demand and GST rate cuts, with BSE500 expected to grow 14% compared to 8.5% for Nifty [1] - JM Financial forecasts a 9.8% YoY PAT growth for Nifty in Q3, up from 8.4% in Q2, with notable growth in telecom (64%), autos (33%), and industrials (31%) [2] - Motilal Oswal anticipates 20 sectors to achieve double-digit growth, with telecom profits expected to increase 2.6x, cement up 66%, real estate up 64%, and capital goods rising 24% [3] Financial Sector Outlook - Axis Securities expects banks to deliver approximately 12.4% YoY credit growth, with management optimism around growth continuing [6][12] - Motilal Oswal forecasts financials, particularly NBFC-Lending, to grow 26% YoY, while private banks and PSBs are expected to contribute moderately [6][12] - Bernstein maintains an "overweight" stance on financials, telecom, and select consumption sectors, while introducing real estate as an overweight [6] Auto Sector Performance - The auto sector is projected to perform strongly, with Motilal Oswal forecasting a 25% YoY growth, benefiting from GST rate cuts and stable commodity prices [7][12] - Axis Securities highlights the auto sector's healthy earnings trajectory supported by favorable regulatory norms [7] Export-Oriented Sectors - Export-oriented sectors are facing challenges, with Axis Securities noting cautious client spending and pricing pressures as key risks for IT services, pharmaceuticals, and chemicals [8][12] - Nuvama anticipates weak profits in export sectors but strong performance in industrials and domestic autos [8][12] - Emkay warns of ongoing trade-deal uncertainties affecting export-oriented sectors, though recovery is expected in H2CY26 driven by improved retail credit flow [8][12] Stock Recommendations - Axis Securities recommends stocks including IDFC First Bank, Bajaj Auto, and UltraTech Cement [8] - JM Financial lists stocks such as Bharti Airtel, ICICI Bank, and Maruti Suzuki [9] - Motilal Oswal suggests stocks like SBI, Titan, and Infosys [10]