Because of covid, the conditions were very bad of the country especially in the terms of economy.
However, the September quarter earnings says that the condition is improving a little bit.
Recovery needs to continue to sustain and get going in the stock markets.
The banking sector was improving quite well before covid and then pandemic happened and brought some new challenges for this sector.
In the six months, market valuations have moved up during this time and are above the long-term average currently.
Two things which can’t be ignored:
1. Growth should be continued irrespective of whatever the per cent is.
2. How the equity market flows behave.
After three the mid-caps stocks have shown signs of improving.
If the economic condition is improving day by day then we can see the earnings momentum return and mid-cap stocks give consistent returns from these levels.
The sectors which will grow positively after the economy is back again are financials, industrials, materials and real estate.
Companies are facing some real trouble because of the economic conditions right now and they are just trying to cope with the fact and wants to get better.
Once we all come out of the lockdown and restrictions then the performance will be better.
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