BNP Paribas Suggests Key Themes As Earnings Forecasts Are Toned Down

Financials, insurance and nonbank financial companies are areas where positive surprises would most likely come from. Consumer discretionary and auto are pockets where a certain amount of risk could loom, according to Eleswarapu.

Over the next three to six months, rural growth may only translate into high single-digit revenue growth, led by mid-single digit volume growth, which doesn't make consumer staples tempting at the moment, he said.

He said most of the information technology companies have had high-teens growth in the past couple of years, with some of them earning a revenue of over 20% as well. "These high numbers, however, weren't expected to last and, therefore, the guidance given by the companies at present isn't shocking."

Eleswarapu said the correction in the stock prices of IT companies is perhaps an opportunity in disguise, especially because the IT spending moves in sync with nominal growth in the gross domestic product. If inflation continues to be reasonably high, IT spending will also pick up.

He said it was possible that the guidance given by IT companies might look conservative in the future. "Once analysts begin to cut their estimates for IT, I'll be more interested in the space."

"Specialty pharma, hospitals and especially diagnostics stocks look safe from a long-term perspective," he said, when asked about constructive areas in healthcare.