Economic recovery may be protracted over Covid-19: Head of equity, Axis MF

Fear of contraction has kept demand low, especially across the services sectors like airlines, hotels and events, says Gopani

Corporate earnings are likely to remain subdued as the coronavirus jolt has impacted sentiment negatively, says Jinesh Gopani, head of equity at Axis MF. In an interview with Ashley Coutinho, he says companies that have rebuilt themselves amid adverse market conditions will be the likely winners of 2020. Edited excerpts:

What do you make of the current correction in the market?

Globally, we have seen several market moulds breaking as a fallout of the coronavirus contagion. Concerns over a longer term demand collapse have threatened depression-like conditions in many advanced economies. Macro analysts globally have rushed to cut growth estimates