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Continue to remain positive on the consumption theme, says BNP Paribas India

Updated : January 08, 2021 05:51 PM IST

Abhiram Eleswarapu, Head of equity at BNP Paribas India said that markets are likely to correct in the short run but remains constructive in the long run.

He said, "The theme for 2021 is that we will have big second half recovery led by COVID-19 vaccine being widely available. We are also seeing earnings being upgraded. There is also the expectation that central banks will remain accommodative. So, this being the scenario that is great for equity markets."

Eleswarapu said, "We are also seeing a big shift from developed markets to emerging markets. This kind of a shift tends to be several years long. We have just started to see emerging markets outperform developed markets in the past 3-4 months or so. When this shift happens, it tends to last maybe a decade sometimes."

Speaking about consumption space he said, "The amount of savings that the consumer has made through this lockdown is massive. So, when a consumer is plush with cash that tends to reflect in increased property sales, increased four wheeler sales and also better consumption. Within consumption also it tends to move towards the more discretionary side of it. So broadly consumption is a space that we like."

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