Markets have recovered in the last one month after falling to multi-year lows in March and according to Nilesh Shah, MD and CEO of Envision Capital, the recovery has been largely fuelled by massive liquidity. He spoke to CNBC-tv18 about the market recovery in June, the impact of COVID going forward and outlook for the September quarter.

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“The market is poised for a recovery in the second half of FY21 given the kind of strong outlook on the rural economy, we have had a favorable start to the monsoon, food prices are still lower, interest rates are still benign and tax rates have come off. So all in all, there should be a strong recovery in the second half," Shah said in an interview to CNBC-TV18.

He added that after a bit of a correction, sometime during this quarter, the markets may again begin to advance and recover in the second half. Shah expects a far stronger second half from a purely fundamental perspective.

Speaking about COVID-19 fears, he added, “It is not that the challenges are behind us, you are going to see speed breakers along the way as the market's advance. COVID-19 will keep posing a lot of challenges to business continuity. Therefore, from a purely fundamental and growth perspective, I don’t think one should have very high expectations for the September quarter as well.”

However, he added, “I probably believe that as long as we have the support of global markets, as long as the liquidity is there, you are clearly going to see the markets prepare for a recovery in the second half. "

Watch the video for the full report

First Published:Jul 8, 2020 12:35 PM IST