Second Covid-19 wave: Overseas investors' behaviour has a story to tell

It remains to be seen how much of their selling is profit-booking or cutting India's weight

The impact of the second Covid wave has led to several downgrades of growth prospects. The IMF says it will review its April 2021 forecast of 12.5 per cent GDP growth when it issues its July forecast. The IMF also noted that developments in India would have spill-over effects.
 
S&P Global has cut its forecast to 9.8 per cent GDP growth, from an earlier projection of 11 per cent. The advisory said the projections assume lower consumption will mean less hiring, lower wages, and a second hit to consumption. Credit Suisse has cut its forecast to 8.5-9 per cent