Raamdeo Agrawal, Chairman of Motilal Oswal Financial Services on Monday said that the financial sector is the most vulnerable to the second wave of COVID-19 as they haven't recovered from the impact of the first wave fully.
“Financial sector which suffered the most last time, again they are vulnerable because they will get impacted. Less so this time, but clearly even now that is the most vulnerable part of the economy, particularly the unsecured loans and the lower end of the population,” he said in an interview with CNBC-TV18.
India recorded an all-time high of 1,03,558 coronavirus infections in a day pushing the nationwide COVID-19 tally to 1,25,89,067, according to the Union Health Ministry data updated on Monday.
The market veteran is however positive on the IT sector and expects quarter-on-quarter (QoQ) earnings growth to be more than 5-6 percent.
“IT looks to be very good to me at this juncture because we have seen the order book position coming in the last three quarters when the lockdown was on. Next week the earnings will come and analysts have put out their estimates saying that sequential growth will be more like 4-5 percent. It is still not completely overpriced and it is not going to be a quarter or two-quarters of a boom, it is going to be multi-year because they have just got the orders. So, I would remain very positive on Indian IT per se,” he said.
According to Agrawal, the auto sales numbers, particularly the MHCV, for March were quite staggering. He also said that with the wedding season kicking in from April, the sector should continue to do well.
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(Edited by : Abhishek Jha)