Markets will digest dent on June quarter earnings as one-time hit: Analysts
Published On: Friday, May 14, 2021 | By: Team KnowMyStock
The present Covid-19 pandemic situation across key economic hubs will dent corporate earnings in the June 2021 quarter (Q1FY22), but the markets will take this in their stride and digest them as a one-time hit look forward to growth as the economy normalises after this wave, believe analysts. They expect the second wave in India to peak by June. Economic normalisation, is likely by August – September 2021 according to them. Economic pain, most analysts believe, will be restricted to the second quarter of this fiscal (Q2FY22) as the stringency of the lockdown measures is relatively low as compared to the first wave in 2020. Yet, leading brokerages and rating agencies, including Moody’s, Nomura, Crisil, QuantEco Research, and CARE Ratings, have cut India’s GDP growth estimates for FY22.
From a growth perspective, analysts believe the sequential recovery is likely to get pushed back by a quarter. The growth setback in Q1FY22, according to analysts at QuantEco Research, will be dominated by demand deferment as opposed to Q1FY21, which saw massive supply disruptions.
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