'Market over-valued but economic indicators improving; invest in these 4 safe sectors'
The steady decline in fresh COVID-19 cases and improving recovery rate has become a distinct trend since early June, a clear indication that we are bending the coronavirus curve.
The improving situation has already paved the way for the lifting of restrictions in several states, including economically significant Maharashtra.
Globally, too, there is good news from the developed world where vaccination is progressing well and the pandemic is coming under control. These trends augur well for the global economy, which is expected to bounce back to 6 percent growth in 2021.
What are the prospects of India's growth and corporate earnings in FY22?
India's GDP contracted by 7.3 percent in FY21. The pain has been acute in the MSME and unorganised segment, which bore the brunt of the coronavirus-triggered lockdowns and restrictions. Unemployment, according to CMIE, rose to an alarming level of 14.5 percent by mid-May.
From the market perspective, this data is history. The forward-looking market is focusing on the unfolding scenario and its implications for corporate earnings.
India is the best performing large market since the crash of …
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