Nifty Recovered from COVID Spikes Low on Positive Global Cues; What’s Next? – India
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India’s benchmark stock index (NSEI) closed around 14683.50 Tuesday, edged up +0.31% on positive global cues. Dow Future soared Monday on upbeat US NFP job and PMI data and as U.S. Treasury Secretary Yellen batted for infra stimulus, while downplayed inflation. On Monday, Nifty tumbled almost -2.75% and made a low around 14459.50 on the concern of resurgence of COVID and partial lockdown in several states including India’s financial capital Mumbai/MH.

Additionally, banks and financials were under stress as the government may not compensate financial losses on compound interest in COVID loan moratorium cases (SC). On the weekend, India officially reported almost 104K daily corona infections and 477 tragic deaths. In various states, the Indian healthcare system is now almost overwhelmed, forcing authorities to go for partial lockdowns, night curfews, etc, and undermining economic activities. As per some estimates, due to partial lockdowns, the Indian economy (around Rs.200T nominal GDP) may take a hit of around Rs.0.40T in more...