Equity market factoring in big growth post-COVID-19, says CLSA

Vikash Kumar Jain, investment analyst at CLSA, on Monday, said that the market is factoring in big growth post-COVID-19.

"Markets have taken an opinion that once COVID-19 is over, there is going to be significant growth pick up. So far, all of the economic data that has come in has been shoved off by the market saying that this is impacted by lockdowns, impacted by COVID etc., In a way that hope or optimism for the bull market, there was no reality check to that hope because everything was struck off saying that COVID is not yet over," Jain said in an interview to CNBC-TV18.

According to him, now is the time when one needs to be more careful as COVID situation is easing out. “Now is the time when one needs to start getting more careful is something that one needs to because December-January-February, we will be dealing with a quarter which should ideally, where COVID can no more be a pretext, and even the economic numbers, etc., that comes out for October-November-December, which we will be dealing with in December-January, as well as the quarterly numbers that come out around that time, plus the budget situation also gives you the picture of the fiscal of the country should all be in a situation where COVID is no more a pretext,” said Jain.