Reliance Securities ED and CEO Luv Chaturvedi (Lav Chaturvedi) Says that the surge in corona virus cases may hamper the pace of business activities. But this is unlikely to cause much harm as the spread of the virus can be prevented by increasing the process of vaccination.
Luv Chaturvedi believes that the corporate earnings, which give a pleasant surprise in the 9 months of FY 2021, will continue in the next financial year as well.
In one of his interviews with Moneycontrol, Luv Chaturvedi gave extensive talks on the risks and expectations related to the market. In this conversation, he said that there has been a rapid increase in the corona cases in Maharashtra. Maharashtra contributes about 13 per cent to the country’s GDP and about 20 per cent to industrial production. The increase in Covid’s case in Maharashtra is a matter of concern.
He further said that it is difficult to predict how much damage will be caused by the new wave of Corona. But it can be said that this loss will not be very large. Considering the experience of 2020, we can say that the spread of corona can be prevented by not doing too big business closure. This infection can be controlled by speeding up the process of vaccination.
In this conversation, he further said that apart from Corona, there are other dangers such as the rise in the dollar index to the market, the change in the situation of interest rates all over the world.
He further said that in 2021, we saw good growth in earnings of companies. Companies will continue to perform well in 2022, despite cost overruns and a new wave of Covid.
According to Love Chaturvedi, in-house research by Reliance Securities, the earnings of companies involved in the Nifty in FY 2022 may increase by 35 to 40 per cent.
Luv Chaturvedi says that corporate earnings are likely to pick up in FY 2022 due to the expected growth in capital expenditures, the impact of budget announcements and higher capital expenditure allocation.
He further said that it is difficult to say which sector will see more growth, but given the increase in current trends and construction activities, it can be said that further we can get good results in companies in cement sector such as infrastructure, industrial and building materials. Can be seen.
Apart from this, real estate and metal related companies can also perform well. At the same time, after the recent decision of the Supreme Court, we can see the impact on the income of banks and NBFC companies. Making more provisions to deal with NPAs can also put pressure on banking and NBFC companies.
Which sectors can provide better returns from medium to long term? Responding to this question, he said that in view of the clarity on the asset quality of banks and NBFCs and the expectation of an increase in credit activities in FY 2022, we can say that we will be outperforming banking and NBFCs in the long term Can be seen.
Apart from this, we can see strength in industrials, infrastructures, building materials, selected automobile companies as they will directly benefit from the growing economic activities and increasing capital expenditure in the country.
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