Markets will digest dent on June quarter earnings as one-time hit: CLSA

If India is unable to slow the number of infections, additional lockdown measures might be required, which analysts at Rabobank International say would negatively impact the supply side of the economy

The ongoing second wave of Covid infections and the ensuing lockdown across key economic hubs will dent corporate earnings in the June 2021 quarter (Q1FY22), but the markets will take this in their stride and digest them as a one-time hit look forward to growth as the economy normalises after this wave, believe analysts at CLSA. 

Using trends from the second wave of Covid-19 in 12 countries and four key parameters – duration in days, reported cases as percentage of the population, cases from start to peak of the second wave as a percentage of the population and infected plus