There are green shoots in the economy, based on the high frequency data, said Venugopal Garre, Director at Bernstein in an interview with CNBC-TV18.

Share Market Live

NSE

Garre said that was encouraging, but the data had a positive bias, and this would continue for a while.

He said other than consumption, the rest of the economy had yet to return to normalcy.

“I have been of the view it is very tough to get returns from the current level of the index but at the same time given the fact that I was expecting the normal script in the economy – normal script primarily is negative 20 percent plus sort of decline in Q1, going on to flattish gross domestic product (GDP) in second half of the year, which means that there would be this momentum reversal, which is going to ensure that any form of correction in the market would be bought. I don’t see that is changing for the rest of the year at this juncture,” he said.

He said over the last couple of month, Bernstein had increased exposure to banks. He said that credit growth would remain sluggish, but concerns over risk to asset quality had reduced.

First Published:Oct 12, 2020 7:07 PM IST