Exclusive: Positive news on Covid 19 to improve market sentiment, says Sunil Singhania, Founder, Abakkus
The lackluster performance of markets is due to concerns over the delay in resumption of economic activity in the country, Sunil Singhania, Founder of Abakkus Asset Manager LLP told Zee Business Managing Editor Anil Singhvi in an exclusive interview
The lackluster performance of markets is due to concerns over the delay in resumption of economic activity in the country, Sunil Singhania, Founder of Abakkus Asset Manager LLP told Zee Business Managing Editor Anil Singhvi in an exclusive interview.
There is still no clarity as to when the economic activity would get into full swing, Singhania added. He was responding to a question on why the markets are so nervous at this point in time.
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#ZBizExclusive | इकोनॉमिक एक्टिविटी शुरू होने में देरी से बाजार चिंतित, कोरोना को लेकर पॉजिटिव खबरों पर ही मार्केट संभलेगा: सुनिल सिंघानिया, फाउंडर, अबेकस एसेट मैनेजर LLP
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The country is in its fourth phase of the lockdown albeit with some relaxations although expectations were that the lockdown would be lifted in a month's time, he said. Another pressing concern for the companies is the mass exodus of migrant labourers, which would become a problem once the economic activities resumes.
The economic package announced by the Government was welcome and the government did what it could but this factor has also lost steam. There are no new triggers visible that could enhance the market sentiments, the Singhania revealed.
He said that things are likely to improve only when the coronavirus situation eases and the economy begins to open.
He further said that the country is heading into a very challenging period which could last for a long time, adding that this was the first time ever that the entire economy was brought virtually to a stand still. It had never happened before, he said.
In his outlook, Singhania revealed that it will be difficult to predict the future in terms of demand or if businesses will have enough capital to take things forward.
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The good thing is that the recovery rate has been on the rise and the number of people getting infected is going down. Going forward as things improve, the demand side will likely pick up, he said.
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12:54 PM IST