The US markets are now leading the global market sentiment. Indian markets seem to be fully coupled with what goes on there. Our markets are taking continuous cues from the Dow and Nasdaq. Investors are fashioning their decisions on US market moves and their index futures.
As the battle against COVID 19 goes into the next stage in the US and India in the coming weeks, markets will witness heightened volatility.
Investors fears will rise and fall as they ascertain whether the economic slowdown post-COVID will brief or protracted. India’s economic response to COVID clearly shows that recovery will be gradual. The measures taken are structural and long term oriented.
Companies availing the benefits and industries seeking to recover from this crisis must show a deeper resolve to tide over this crisis. Displaced employees must regain their jobs and quickly return to their places of work. Economic activity must return to normalcy in one sector after another.
These activities are going to happen incrementally, keeping in view the progress achieved in flattening the curve. As of now, we are still a long way off from decisively overcoming the virus. Our ability to raise our fight against COVID quickly will certainly make a strong impact on the economy. Businesses have begun activity even while the final battle against the virus has barely begun. Volatility looks certain to remain high for the next few days.