Lockdown fallout: ICICIdirect lowers Sensex target for FY22 to 33,500

With almost nil manufacturing activity in this 21-day period and slow ramp-up thereafter ICICIdirect downgrades Nifty earnings estimates to the tune of 4% for FY20E, 18% for FY21E and 13% for FY22E.

Moneycontrol News

April 13, 2020 / 12:23 IST

COVID-19 is a black swan event with far-reaching implications for businesses worldwide as well as for stock markets. In a recent research note, ICICIdirect revised its target for both Sensex and Nifty50 downwards for the year 2020 as earnings are likely to take a hit.

“The Indian economy is no exception with a stringent 21-day lockdown period underway. With almost nil manufacturing activity in this 21-day period and slow ramp-up thereafter amid subdued consumer sentiment, we downgrade our Nifty earnings estimates to the tune of 4% for FY20E, 18% for FY21E and 13% for FY22E,” said the report.

“Incorporating the downward revision, we now expect Nifty earnings to grow at a CAGR of 13.2% in FY19-22E versus the expectation of 18.6% CAGR in the past,” it said.

ICICdirect

COVID-19 Vaccine

Frequently Asked Questions

How does a vaccine work?

A vaccine works by mimicking a natural infection. A vaccine not only induces immune response to protect people from any future COVID-19 infection, but also helps quickly build herd immunity to put an end to the pandemic. Herd immunity occurs when a sufficient percentage of a population becomes immune to a disease, making the spread of disease from person to person unlikely. The good news is that SARS-CoV-2 virus has been fairly stable, which increases the viability of a vaccine.

How many types of vaccines are there?

There are broadly four types of vaccine — one, a vaccine based on the whole virus (this could be either inactivated, or an attenuated [weakened] virus vaccine); two, a non-replicating viral vector vaccine that uses a benign virus as vector that carries the antigen of SARS-CoV; three, nucleic-acid vaccines that have genetic material like DNA and RNA of antigens like spike protein given to a person, helping human cells decode genetic material and produce the vaccine; and four, protein subunit vaccine wherein the recombinant proteins of SARS-COV-2 along with an adjuvant (booster) is given as a vaccine.

What does it take to develop a vaccine of this kind?

Vaccine development is a long, complex process. Unlike drugs that are given to people with a diseased, vaccines are given to healthy people and also vulnerable sections such as children, pregnant women and the elderly. So rigorous tests are compulsory. History says that the fastest time it took to develop a vaccine is five years, but it usually takes double or sometimes triple that time.

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