Are new big trends going to emerge next year or is it going to be a continuation of what has happened in 2020?
There are three things that we are hoping to benefit from at Marcellus. a) We think we have not even begun a proper recovery yet. This is still the closing stages of the unlocking process. As gradually the fear of Covd is shed in 2021, we will see a much sharper pickup in consumption and demand, especially in sectors like auto, building materials, consumption, consumer durables and so on. We have not seen anything yet in terms of demand pickup.
It is turning out to be quite a stellar market after the Monday slide. How are you reading into the situation given the new Covid strain in the UK and lots of clampdowns coming in globally. It seems Indian markets are not taking too much notice?
We have to realise that the vaccinations across the world will take a long time. I have been speaking to my friends and relatives in the UK but it is going very slowly and it does not look like anytime in the next 12 months we will be done with this whole drive to vaccinate the world. It will probably take the best part of two years and we are going to be prepared for the two-steps forward one-step back dynamic. This time it is in the UK, perhaps next time we would not be so lucky!
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Marcellus Investment..
Big worries are coming in as far as Dalal Street is concerned. As much as Rs 7 lakh crore in terms of market cap was eroded in a single day. The markets were overbought and they were looking for some sort of a development to give up some of their froth. Medical developments have come in as a big worry for investors.
It always helps to keep things in perspective on days like this. So even after Monday’s fall, the Indian market is up nearly 4% over last month. Whenever markets rise 4% in a month, it just gives you a sense that people were getting a little excited. Last week, I noted with alarm that several low quality companies with barely anything to show for by the way of balance sheet or credible fundamentals, were having a roaring run. So in that regard, it is salutary to get these corrections. It sort of injects some common sense back into the system.