Last month witnessed rollercoaster market movement with the first half mirroring the pain on the back of concerns such as China and Fed uncertainty over the quantum of rate hike coupled with sharp selling by FIIs. However, the market, post the Union Budget witnessed a strong recovery as market participants lauded the government’s commitment towards fiscal consolidation. The government, in the Union Budget, continued its effort to boost investment in agriculture, social sector, infrastructure and employment generation, on the one hand, while sticking to the fiscal consolidation path, on the other. We continue to be bullish on domestic oriented sectors like automobiles, cement, capital goods . Defensive sectors like FMCG, pharma and IT could perform in line with broader markets. We are negative on banks, metals and oil & gas. Post the Q3FY16 results and incorporating the requisite index changes, we expect Sensex EPS to decline 3.5% YoY to Rs 1311 and then showcase back ended recovery with 18.9% YoY growth in FY17E to Rs 1559, respectively.