1 min read.Updated: 02 Nov 2020, 02:40 PM ISTAvneet Kaur
The year 2020 is largely about survival, both health‐wise and finance‐wise
It is also an opportune time to tweak and tighten your portfolio for the next bull run
Just when Indian equities looked to reverse the subdued action prevalent since early 2018, the unprecedented Covid‐19 pandemic dealt a ghastly blow in early 2020. But the analysts believe, the worst is over for the capital markets. "We take ample solace from the below‐50K daily case count drop for several days in a row, as also the prediction by Thyrocare’s Dr A Velumani, that India may escape a second Covid wave. In our reckoning, the best for the market lies immediately ahead of us," says a report by Yes Securities.
The year 2020 is largely about survival, both health‐wise and finance‐wise. It is also an opportune time to tweak and tighten your portfolio for the next bull run. "Vikram Samvat 2077 could well be akin to the year 2003, from a market standpoint," believes Yes Securities. The broker's top picks includes companies namely,-- KPR Mill, Mannapuram, Redington, Kansai Nerolac, M&M, ICICI Bank, TCI Express, HDFC, Radico Khaitan, Kotak Mahindra Bank, CRISIL and Alembic Pharma.
The sharp recovery in the ongoing Q2 FY21 results is nothing short of impressive. Barring few stressed sectors like aviation and multiplexes, as also the fact that half the result season is yet to unfold, the scene is highly encouraging. "While many businesses have grown on a year‐on‐year basis, many others are only 10‐20% below pre‐Covid levels," says Yes Securities.
The broking firm believes the banking industry looks in much better shape unlike what was feared, given the growing collection efficiency, adequate provisioning, and the fresh capital cushion lent to balance sheets.
Notwithstanding the near‐term volatility, the US election results seem a non‐event. "Whichever government comes to power in US is likely to continue the pro‐India stance, and markets will run their course," says the report by Yes Securities.
On the flip side, the stress outside the listed space, within the MSMEs, remains a key monitorable. There are also few concerns around the fiscal deficit, jobs and the like, but a market rally hardly ever expects to have all ticks marked in its favour.