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Coronavirus lockdown worse than 2008 global financial crisis, say analysts
Here’s another estimate of the likely impact of the coronavirus pandemic on the economy, this one coming from the ING Group.
IANS reports: "ING Group said in a note that the three-week nationwide lockdown will significantly dent India’s GDP growth, making this an even worse year for the economy than the 2008 global financial crisis. This demands a stronger policy response. Until then, the looming economic misery is poised to push US dollar/rupee above 80 in the coming days
The report said that the biggest whammy will be to private consumption, which accounts for 57 per cent of India’s GDP. With all non-essential consumption dropping virtually to zero for a week in the current quarter means year-on-year GDP growth plunges to just about 1 per cent, and with two weeks of a hit in the next quarter could push it to about -5 per cent."
Stocks rally at open
The benchmark indices are up well over 3% in the initial minutes of trading this morning.
The Sensex has gained close to 1,000 points while the Nifty is trading close to the 9,000 mark.
Overnight, the Dow Jones gained over 6% after hopes of stimulus increased following record job losses.
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