Will the markets appropriate contemplating the second wave of the coronavirus pandemic? We anticipate to see a while correction, stated Sridhar Sivaram, funding director at Enam Holdings, on Wednesday. He added that he sees headwinds available in the market and expects them to remain.
“If there’s a consolidation, it’s good for the well being of the market. I don’t see the market working away, there’s plenty of headwinds proper now,” he stated.
Speaking in an interview with CNBC-TV18, Sivaram stated, “We would see some sort of a time correction. The market may not have corrected much but it is also struggling to get past its earlier highs. Therefore, there will be a time correction and it will depend on how the US market behaves; if we see a correction there we will see a correction in other emerging markets too.”
Sivaram additionally stated that greater banks higher positioned to deal with stress from the second wave (COVID-19).
Talking about banks, Sivaram stated, “At this stage, there is a possibility, given the lockdowns we are seeing the economic activities have significantly come down and this could show up in some sort of NPA numbers in 3-6 months to come. I think the banks are better positioned to handle (stress from the second wave of COVID-19) that, they have excess provisioning and that’s how I will be positioning myself which is to stay put with large banks both private and public.”
According to him, international demand for metals has gone up on account of the push to infrastructure. “We are seeing many commodities at significant highs, not from past one year but multiyear highs. We still think that metals have significant upside from where we are right now,” stated Sivaram.
For the whole interview, watch the video
