Considering the risky asset class in a country struggling with its most horrific calamity since its violent partition and independence nearly 75 years ago.
New daily Covid-19 infections have remained above 300,000 for two weeks now, the worst caseload the world has seen. The death rate is 3,700 plus- probably much higher if you discount the underreported official statistics. Fear of the virus is pervasive. Even the rich and the powerful are finding it hard to arrange a hospital bed or track down an oxygen cylinder. But in all this, the benchmark Nifty 50 Index is down ever so slightly, clocking a less than 5% decline since mid-February.
IS STOCK MARKET DETACHED FROM GROUND REALITY?
At a time everyone is focused on protecting themselves from the coronavirus, with even corporate are diverting their industrial resources towards the manufacture of oxygen, the rally in the markets has taken many by surprise. There is a huge gap between the ground reality and market and I have a feeling that the ground reality will soon catcdh up.
SO WHY IS MARKET RESING NOW?
A good earning season has come as a big positive for the markets; also, many feel the markets are looking at a bright scenario two months ahead as they always trade over the future outlook. If the absence of a nationwide lockdown and the limited impact of lockdowns announced by the states have reduced anxiety, there is optimism surrounding the vaccination programme.