50 days of lockdown: Indian markets are among the biggest losers globally

Fifty days into the lockdown following the coronavirus pandemic, India's economic growth has only worsened. Except for some good news such as the 45 per cent fall in crude oil prices and 10-year government bond yields falling by 57 basis points since the start of March, almost all leading indicators have worsened.

For instance, auto sales were almost zero for the month of April, and companies are still limping back to produce vehicles. The average power demand after lockdown, compared to demand during March 1-22, is down by 16 per cent, while the Index of Industrial Production plunged 17 per cent for March, and rupee is down four cent versus the US dollar since the start of March.

 

Similarly, rail freight traffic has plunged to a third as compared to March figures. Consequently, GDP forecasts have been cut further by leading agencies. Foreign investors, which had sold heavily since February, are on the back foot. Not surprisingly, Indian markets are among the biggest losers globally, and gold prices are inching up each day with increasing desire to protect capital.