RBI measures are good; markets will recover only when Covid-19 cases dip

Nifty is unlikely to see a new low, provided there are no negative surprises as regards Covid-19 cases.

The measures announced by the Reserve Bank of India (RBI) Governor Shaktikanta Das on Friday are good. It shows the intent of the central bank to fight the economic crisis posed by the Coronavirus (Covid-19) pandemic as the governor said - "we will do whatever it takes." It is possible that the central bank or government will announce further measures / economic package in the days to come to support the economy.

The market, however, won't recover by these economic measures as these are not the remedies it is looking for. A sustainable rally in the markets will only come if