Nifty earnings impact due to COVID-19 less than 5% for FY21: Nomura

Tiles, textiles, chemicals and APIs sectors stand chance to gain market share from their Chinese competitors. These sectors, according to Nomura, constitute 8-10% of FY21 Nifty EPS consensus estimates

The impact of coronavirus (COVID-19) on Nifty50 earnings is likely to be less than 5 per cent for financial year 2020-21 (FY21), according to a recent report by Nomura. The brokerage remains optimistic on Indian markets and suggests the recent correction be used to accumulate stocks.

“In our assessment, the impact on Nifty earnings on account of COVID-19 disruption is likely to be less than 5 per cent for FY21F, over and above our expectation of a 5 per cent cut in consensus earnings due to slower economic recovery. We expect a gradual recovery in the Indian economy over the