Indian stocks do better as economy opens |
Even as India continues on a trajectory to overtake the US as the country with most coronavirus cases, investors in the indian stock market are appreciating efforts by the government to re-open its economy. The BSE Sensex has rallied almost 11% since hitting a more than two-month low on September 24, the best performance among the world`s national equity benchmarks. It is less than 2% away from wiping out its losses for the year. Activity in India is already at 93% of pre-Covid levels. The nation is set to further relax restrictions on gatherings of people and allow schools, multiplexes and entertainment parks to reopen in some areas from 15th of Oct. There is a good chance that third-quarter GDP shows a recovery and then the Sensex hits a record by December. The Sensex capped its best week since early June on Friday as the central bank signaled more policy easing ahead and announced a slew of liquidity steps to support the economy. The Indian government has pursued a gradual re-opening and the Covid peak seems to be behind now, as efforts to bring back the economic growth of pre-COVID times is going strong.
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