Globally, there are a few factors that have surprised us. One, the speed of recovery has been much better than expected across the board, not overcoming the more recent virus led rock in some of the already developed economies. Two, especially for India, the containment of Covid-19 has been a positive surprise and that has encouraged proceeded normalization dormancy because that is something that other economies have not seen as much. There have been cases of viruses going up. The overall policy purpose, monetary, and fiscal has been quite a waste substantial. It is an acceptable global environment and especially for India, given the virus containment. We believe that the lag impacts of the easy policy of India are yet to show in the growth numbers. We think India’s growth is taking off to surpass other countries this year in Asia. So in the calendar year 2021, India is expecting close to 12.8% expansion which is partway based effectively driven but from an important perspective, is a moderately strong growth number
The major concern essentially is about the increase in prices of the commodity, which can put a burden on margins for numerous companies. If one looks at the non-oil and gas, non-financial area, and the edge is clearly at a decade high for EBITDA. There can be some probable risks that we would like to be careful and pickier in equities presently. The key focus that we are peeking at is nearly an intense cyclical healing and we are optimistic on specific banks where we see decent valuation assistance. We are optimistic about infra construction space and that is one focus that should begin to play out. Also, we stay positive on IT and the pharmaceuticals, where there are structural expansion stories from a medium-term standpoint. In the background of the established liquidity setting would see valuation multiples in these areas and will go higher from the recent status.
