Markets in a vulnerable zone, full-fledged bear phase less likely: Analysts

Those at Motilal Oswal caution against the possible earnings downgrades going ahead due to the mobility restrictions, which they believe has 'muddied sentiment and impaired FY22 earnings visibility

Equity market is in a ‘vulnerable zone’ and are likely to remain very volatile, impacted by the sharp rise in Covid cases in the country since the past few weeks that has seen many state governments impose lockdowns and mobility restrictions to check the rampant spread, said analysts at HSBC in a recent report. They, however, have ruled out a deep correction for now. 

From a medium-to-long term perspective, however, most analysts remain bullish about the markets but do caution against the possible earnings downgrades given the sporadic lockdowns and expensive valuation. While lockdowns can weigh on growth expectations in