COVID-19 Second Wave: Goldman Sachs has reduced India’s growth rate for the current financial year 2021-22 from 10.9 per cent to 10.5 per cent.
The second wave of Corona wreaks havoc
Goldman Sachs, a Wall Street brokerage company amidst the second wave of COVID-19 transition in India, lowered India’s growth rate forecast from 10.9 per cent to 10.5 per cent for the current fiscal year 2021-22. is. Apart from this, the brokerage has also reduced its estimates of the stock markets and earnings. In India, cases of COVID-19 are reaching new records daily. Also, lockdown is also increasing in various states.
Economists of Goldman Sachs, led by Sunil Kaul, said in a detailed note that the epidemic cases have reached record high and strict lockdown by several major states has raised concerns about the increase. Due to this, investors are apprehensive about the macroeconomy and improvement in income.
Speed will pick up again from July
With this, Goldman Sachs has reduced the estimate of earnings growth in 2021 from 27 per cent to 24 per cent. The brokerage forecasts that revival will resume from July after easing the restrictions and increasing the pace of vaccination.
The note states that the crisis of confidence is also visible in the stock markets. The Nifty lost 3.5 percent on Monday alone. Goldman Sachs has reduced its growth forecast for the second quarter of June. However, he has not given any data for this. However, the note has expressed hope that the total impact of all these things will be minor, as the curbs have been imposed in some areas.
Second wave of COVID-19 may weaken India’s economic recovery
Moody’s Investors Services said on Tuesday that the second wave of Corona virus infection in India poses a risk to growth forecast of 13.7 per cent for FY22 as measures are re-implemented to prevent the virus infection. Doing this will curb economic activity and may hit the market and consumer sentiments.
Moody’s further said that the steps taken till the end of April to stop the second wave can weaken the economic recovery. However, advances in prevention measures and vaccination will reduce the credit-negative effect.
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