“What we are seeing is the second wave of COVID-19 and it will eventually peak at some stage. Thereafter, you will start seeing a recovery,” said Venugopal Garre, Managing Director at Bernstein in an interview with CNBC-TV18.

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He expects the economic recovery to come back fairly quickly because supply chains are in a much better shape than it was last time.

He is underweight on certain discretionary sectors. “We moved to underweight two months back – on something like autos and even on discretionary small value, which we were positive last year – we moved to equal-weight and at this juncture, demand is weak for both,” he said.

In terms of EPS growth for FY22, he mentioned, “I would probably say that playing with growth numbers is very tricky because the base itself could be slightly lower but compared to absolute forecast which was there originally, I probably see 5-7 percent risk there at this juncture.”

For the full interview, watch the video

(Edited by : Abhishek Jha)

First Published:May 10, 2021 11:52 AM IST