Covid second wave likely to be less protracted: Credit Suisse

MUMBAI: Credit Suisse believes that the rapid spread of the second wave of the pandemic means that it will be less protracted too and 40 per cent of the population will have antibodies by the end of April.

The firm pointed out that the spread of cases and deaths in the second wave are so far more concentrated than the first wave.

Lockdowns are likely to be localised, short lived and less stringent than last year, said Credit Suisse.

"Activity restrictions imposed by states are currently limited to weekend/night lockdowns. If medical capacities get stretched, harsher measures can be taken, we expect these to be localised," said Credit Suisse.

The firm said the fear of a third wave should be addressed by the approval of Sputnik and possibly Johnson & Johnson's vaccine.

Credit Suisse said the new stress on financials is likely to be limited to segments such as hotels and travel where it is unlikely that sizable new loans have been given since January.

"Given the steep correction, we remain buyers, and recommend accumulating further on dips," said Credit Suisse.