Covid 2nd wave severity will determine pace of growth: FT's Radhakrishnan

Faster-than-expected recovery in the US economy and the resultant tapering of stimulus by the US Federal Reserve could potentially affect risk sentiment and impact flows to emerging markets like India

The renewed surge in Covid-19 infections and possible tapering by the US Federal Reserve are the two risks to the market says Anand Radhakrishnan, managing director & chief investment officer – Emerging Markets Equity - India, Franklin Templeton. In an interview with Samie Modak, Radhakrishnan says equities continue to be the most lucrative investment avenue. Edited excerpts:

What are the biggest tail risks for the market at present?

The length and severity of the second wave of the Coronavirus (Covid-19) pandemic will be the key determinants of the pace of recovery for the Indian economy. Faster-than-expected recovery in the US