Nominal GDP growth could fuel largecap recovery; pharma, auto ancillaries remain preferred bets: Shreyash Devalkar

Axis MF's Shreyash Devalkar expects largecap stocks to recover as nominal GDP growth improves, potentially narrowing the earnings gap with midcaps. He remains positive on pharma and auto ancillaries, while viewing the IT sector as lacking growth triggers given sub-5 percent dollar revenue growth. The June-quarter earnings season has been more resilient than initially feared, with limited impact from geopolitical tensions and inflation on listed companies.