If the coronavirus pandemic tightens its grip on India, and if the disruption extends beyond June, the Indian economy may see 0.2% decline in fiscal year 2021 in the extreme scenario, warns Gautam Chhaochharia, Managing Director and Head of Research at UBS Securities, India. In an interview to ETMarkets.com he said in case Indian managed to achieve quick normalisation, the economy may grow at 4 per cent for financial year 2021, which is UBS’ base case forecast. Assuming this is not a prolonged scare, and it does get resolved, his base case target for Nifty for March 2021 is 10,000. Edited excerpts: Is the current crisis worse than what we saw in 2008 from market’s point of view? What lies ahead for us?There are two elements: First is from a pure market’s perspective. If I look at current market valuations on a headline basis for Nifty, we are not yet at the GFC (global financial crisis) lows, despite the big correction we have seen. The second point is, the current cycle is very unique and different. We cannot really compare it with GFC. We have not had any market cycle historically, where it has been impacted by a health or… Read full this story
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If Covid disruptions last beyond June, FY21 GDP may see 0.2% de-growth: Gautam Chhaochharia have 236 words, post on economictimes.indiatimes.com at April 2, 2020. This is cached page on Drudgereport. If you want remove this page, please contact us.