Cyclicals will continue to surprise: Aditya Narain
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Last Updated: May 24, 2021, 01:12 PM IST
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Aditya Narain, Head of Research, Edelweiss Financial Services, says he is biased much more towards cyclicals. Edited excerpts from his interview with ET Now:
Why is the market so strong even as the earnings estimates for FY22 are challenged because of the medical crisis?
It is because of a combination of several factors. Both the global economy and markets are doing well and that is helping earnings in India through exports. The second thing is the easing off of the second wave of Covid. The third thing is that while there will be some risks to earnings from a demand perspective, we are doing reasonably well on the cost side. That said, you got to be watchful because the demand outlook has clearly faltered over the last month or so.