'Earnings upgrade cycle seen over the last two-three quarters may end'

A severe third wave of the Covid pandemic, he says, is not priced into investor expectations at this time

As India Inc remains watchful of growth amid uncertainty due to the third wave of Covid-19, UNMESH SHARMA, head of institutional equities at HDFC Securities, tells Nikita Vashisht that it will be a stock pickers’ market in fiscal 2021-22 (FY22), with bottom-up positive risk-reward investment ideas available across most sectors. Edited excerpts:

Markets seem to be indecisive of direction amid rising Covid-19 cases but ample liquidity. What is your short-to-medium term outlook?

The market is caught in a tug-of-war of counter pressures. While on one hand we have concerns on inflation, Covid 19 – possibility of a third wave in