Equity Market Outlook


AS ON 31st January 2022

 


Quarterly Earnings: December quarter earnings have started. As usual, there have been a few hits and a few misses. The Banking space has seen better than expected nos with Credit costs being lower than expected and loan growth starting to come back. At the same time some consumer facing companies have been below expectations due to higher raw material inflation.There is a likelihood that the earnings upgrade cycle may halt for the time being.
Covid: Cases/Vaccinations: Omicron cases rose sharply while hospitalizations remained in check. Total India daily case load showed a sharp rise; however, the effect of Omicron variant was much milder. As announced in the previous month, vaccinations for children in the 15 to 18 years age group began.
Unlock: With Increase in Omicron cases, there are some lockdowns again in some of the States mostly related to Movie halls, Malls. However with Omicron threat being lower, Schools are reopening in Maharashtra for all grades. Gradual opening up of the economy is ow exepected barring any more virus related shocks. The good part about the third wave is that the mortality rates are in check.
Politics-Farm Laws: After the farm laws were repealed, farm unions ended their year-long agitation and left the sites they occupied on Delhi borders as the government accepted most of their demands in a signed letter.