FY22 GDP estimate tapers to 9-10% due to COVID-19 second wave: UBS India
Anuj Kapoor, Head of Global Banking at UBS India spoke on a wide range of subjects, including markets, sectors to watch, and economic revival.
Anuj Kapoor, Head of Global Banking at UBS India spoke on a wide range of subjects, including markets, sectors to watch, and economic revival.
On markets, Kapoor said, “I would be cautiously optimistic about the markets. I do still see upside for the rest of the year. However, there are certain factors to look at. The way we prepare ourselves for the third wave including the extent and the speed with which we can roll out vaccinations is going to be a critical determining factor for how markets behave.”
“Equally important is to watch out for inflation, not just in India but globally. Given inflationary pressures and some of them are real, it remains to be seen how real interest rates they give. That is going to be the second most important factor in terms of how the markets behave," he added.
On GDP growth, Kapoor said, “As far as growth is concerned for the current fiscal, the earlier estimates ranged from 10.5-12 percent and given the impact of the second wave this has been tapered off to anywhere between 9-10 percent. I am hoping things should start opening from the month of June although in a very calibrated manner so in terms of the expectation we believe that the recovery would happen and the Indian economy will grow in the healthy fashion.”
On sectors to watch, he said, “I am still a firm believer in financial stocks. I still believe that there is a fair amount of return and value to be created. Some of the large private sector banks are well equipped to offer a healthy return in the medium to long run fro, hereon.”
“Consumer staples would continue to grow. However, the valuations are quite healthy. I am very gung-ho on some of the new aged technologies. Their businesses have not been impacted. Going further, some of those new-aged companies are expected to get listed land I would watch out for those companies.”
For the full interview, watch the accompanying video...
(Edited by : Anshul)
First Published: May 25, 2021 3:25 PM IST
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