Cyclicals To Drive Q4 Earnings; Rising Covid-19 Cases A Headwind: Motilal Oswal
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Motilal Oswal Report
FY21 has been a stellar year for the markets as all the mainstream indices have delivered solid returns on the back of sharper-than-expected economic and corporate earnings recovery.
The Nifty is expected to end FY21 with healthy 13% earnings growth, the highest since FY11, despite the challenges posed by the Covid-19 pandemic.
1. Broad market share shifts toward organized corporates across sectors and
2 prudent cost optimization measures catalyzed this 13% earnings growth in a year when nominal gross domestic product is expected to decline 4% YoY.
Q4 FY21 is likely to be another strong quarter as high-frequency data points indicate decent economic recovery. However, a spike in Covid-19 cases in the second wave has started somewhat muddying the outlook.
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