Markets retesting March 2020 low is within the realms of possibility

As markets realise that it will take a long time for the economy to revive and things coming back to normal, they will drift lower.

The markets rallied sharply from around 7,500 levels on the Nifty50 seen in March to over 10,000 till recently. The rally was unwarranted, as there was no change in fundamentals. There was nothing that suggested that things—in terms of likely change in economic fundamentals or the number of Covid-19 infections—have improved dramatically for the 35-40 per cent up move in the S&P BSE Sensex and the Nifty50 indices. The dent on India Inc.'s earnings was visible in companies' March 2020 quarter results though the nationwide lockdown impacted just a few days of that month. The numbers have not been impressive