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"There is a view among many market experts that the present resilience of the market ( down only around 5% from February highs) is irrational when viewed from the perspective of the health crisis & pain that the nation & the economy is going through. While there is logic in this view, it is important to appreciate the fact that we are part of the global bull market and the resilience of the Indian market mainly arises from the 'hope trade' being fuelled by the expectation that the second wave will peak in May and the economy will quickly rebound. Moreover, Q4 results have been broadly above expectations. The market may continue to be resilient.

But investors have to be cautious since uncertainty is high and the second wave may impact the economy & earnings worse than presently expected.

It makes sense to partially book profits and move some money to the safety of fixed income"

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