The second wave of COVID-19 cases in India has brought back fears of a pause in economic recovery, with Dalal Street taking a hit as investor sentiment dipped.
On 12 April, Sensex lost over 4,400 points from a record high of 52,516 on 16 February. Nifty, on the other hand, fell below the 14,600 against a record high of 15,431.
Investors are spooked over the fact that the states impacted by the second wave contribute significantly to India’s GDP. Maharashtra, the worst hit state contributes 13.7 percent, Karnataka (8 percent), Gujarat (7.8 percent), Rajasthan (4.9 percent), Madhya Pradesh (4.2 percent) and Punjab (2.7 percent).
What is more worrisome is that it took just 47 days for India to cross the 1,00,000 daily Covid cases mark, compared to the first wave that took us 102 days to reach the peak.
The Indian market has been witnessing strong bouts of volatility since the beginning of March when the cases started spiking again. So should the individual investor be worried about the money they have parked with rising cases or is this just another opportunity to buy low and sell high?
Host and Producer: Himmat Shaligram
Guest: Niraj Shah, Markets Editor, Bloomberg Quiint
Editor: Shelly Walia
Music: Big Bang Fuzz
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