As things stabilise post the vaccination drive, things will come back into shape and the market will continue its uptrend, says Prasanth Prabhakaran, MD & CEO, Yes Securities. Edited excerpts:
What are your thoughts on the fear of global yields coming down? Do you subscribe to the argument that it is just a reason for the market to clean the froth and good quality stocks will attract flows once again?
The fact remains that when you have a V-shaped recovery in stock markets, you will have froth and there will be umpteen attempts by the market to regularly clear this out and end up making sure that you have a stronger recovery. It is typical of a bull market. There are phases of trend reversals. However, the abundance of liquidity and strengthening of the economy which will happen in the future will limit the downside. Any retracement will be a lucrative opportunity for savvy investors.