Mayuresh Joshi, Head of Research at Willam O Niel India spoke to Money9 to share insight on how he believes markets are likely to tread amid the covid second wave and the fresh restrictions.
He said, “While global markets have been very supportive, the US economy is recovering well, Europe is limping back and therefore markets should be in fine fettle until first half of FY23. However, domestically the Covid-19 second wave has dampened sentiments a bit for the markets. ”
He also says that there are apprehensions about the partial lockdowns and record number of cases and its impact, however the growth outlook by the RBI is comforting. So, for now there will be patchy, volatile phases but the markets should rebound going forward as earnings are expected to do well.
On the upcoming earnings and the strategy investors must adopt on that, he said, “Currently, IT, Pharma, Metals have been picking up. Going forward I expect banking, financials, infrastructure sectors to do well. ”
On how should one approach the earnings theme he said, “Management commentary, order book and growth guidance are key to note before investing in particular companies ahead of earnings. The vaccine plays also will be key for investors to keep on radar including pathological companies. Hospital stocks also stand the chance to do well”
Going forward, Joshi also believes the vaccination drive to pick up momentum and most vaccinations should be done by September giving further comfort to markets.
On the stock picking strategy, he says that leaders within the sectors linked to economic recovery are poised to do well.
Tune in to watch the full interview here.
