HomeEconomy News‘Market beginning to discount recovery; one needs to be watchful’

‘Market beginning to discount recovery; one needs to be watchful’

The jury is still out whether there are any more triggers for economic growth than the ones we have seen so far, and the market is beginning to discount some of that, Aditya Narain, Head-Research, Edelweiss Securities, said in an interview with CNBC-TV18.

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By Latha Venkatesh  October 9, 2020, 3:39:57 PM IST (Updated)

‘Market beginning to discount recovery; one needs to be watchful’
The jury is still out whether there are any more triggers for economic growth than the ones we have seen so far, and the market is beginning to discount some of that, Aditya Narain, Head-Research, Edelweiss Securities, said in an interview with CNBC-TV18.


“…so when that is beginning to happen, unless you have a strong call on this recovery continuing and you effectively looking at the fourth quarter where you will see net gross domestic product (GDP) and earnings growth until you are confident of that, I think you need to be a little watchful,” he said.

“What has happened is you have looked at the production side in terms of data rather than the pure demand side, the end-demand side and there could be a little bit of a gap in that,” he said.

According to Narain, thee reason why a lot of companies are getting more optimistic is because their production numbers are looking better, the festive season is coming up.

“So they (companies) are putting in the inventory for that but whether there is going to be end-offtake of the magnitude that the market is now factoring in, you will need to be a little watchful of that. So I would sit back a little bit but between a certain level of normalisation, between a good policy framework, between a certain focus on demand rather than just looking back, the direction is much more positive than it has been for a while,” Narain said.
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