How will stock market react to third covid wave?

The stock market has reacted in an opposite fashion during the first two waves of the pandemic. While the first wave had hit the equity market hard, the markets kept hitting fresh highs during the worse second covid wave. Where should we believe the stock markets will head if another wave hits the nation. Sunil Subramaniam, Managing Director, Sundaram Asset Management does not see the third covid wave as a threat to the stock market. “Markets do not like negative surprises. Even if a third wave comes, it is a known event. It may cause a few setbacks but a long term growth path will be clearly laid out,” he says. He believes that the future movement of the stock market will depend on how quickly the economy bounces back after the second wave. Watch the video for details.