Vinod Nair, Head of Research at Geojit Financial Services.
It is not a big surprise for the market since it was expecting phase-wise reopening of the economy which is mostly in-line with the latest protocol. The extension will have a mere impact since the main thesis of the market that the economy will open effectively post June 2020 is largely maintained. But more than that the market has realized a concern, based on latest economic & corporate data, that the cascading effect on the domestic economy & corporate earnings is much more than anticipated. While the global market is worried about deglobalization and trade war which will impact further the economy, unemployment and possible bankruptcies in the future.
Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services
Extension of the lockdown, though necessary from the public health perspective, can seriously impair the economy, particularly the MSME sector. Government's relief measures are getting delayed further aggravating the crisis. The government should quickly decide on the quantum of the relief, maximum fiscal deficit possible and monetisation of a part of the deficit. Otherwise it will be a case of relief delayed becoming relief denied. Otherwise it will be a case of relief delayed becoming relief denied.