Foreign portfolio investors (FPIs) have taken out ₹1,30,491 crore between January and May 2020, making it the worst period in 5 years. March witnessed the maximum monthly outflow since 2016.
The cautious easing of the lockdown in several states and the reverse migration of labour will make a return to normal economic activity a difficult task.
The extension, which takes the total day-count of the lockdown to 54, will add to the challenges that the economy was already facing before Covid-19 took the shape of a pandemic.
Both the Sensex and the Nifty 50 stage more than 14% recovery. The Sensex market capitalisation is up by nearly ₹7.63 lakh crore with 13.48% monthly growth.
The delay in stimulus announcement is disappointing and raises the probability that a stimulus, if any, might be weaker than expected, says Jefferies India.
Facebook’s $5.7-billion investment in RIL’s subsidiary will help both companies monetise their digital platforms; it will also aid in deleveraging RIL’s balance sheet, says Fitch Ratings.
Analysts with varied views have the 2008 global financial meltdown as the nearest comparable to the Covid-19 pandemic. But they are agreed on one thing: the need for caution.
Chang Yong Rhee, director of the IMF’s Asia and Pacific Department, also wrote in a blog that the current crisis from Covid-19 is like no other, worse than the Global Financial Crisis.
Day after the lockdown extension announcement, markets remained in positive territory for majority of the day before global cues pushed them to close in the red.
