Weekly Commentary – 24-April-2020

Last week: NIFTY50 -1.2%, Midcap -2.7%, Smallcap -3.2%, Sectoral: PHARMA 3.9%, IT 1.3%, METAL -9.4%, PSE -5.5%

Market Updates:

• India’s GDP in the range of -0.9% to +1.5%: CII – CII has reported that India’s GDP is likely to be in the range of -0.9% to +1.5% in the current financial year (FY21), with the economy undergoing a turbulent phase caused by the coronavirus-induced lockdown. In the baseline scenario, GDP is expected to grow at 0.6% on an annual basis as economic activity is expected to remain constrained due to continuing restrictions on the free movement of goods and people beyond the lockdown period.
• RBI’s measures for NBFCs may not increasecredit flow to broader economy: Moody’s – Moody’s has reported that RBI’s liquidity-boosting measures for NBFC sector is unlikely to boost credit flow to broader economy. NBFCs would shore up their own liquidity rather than on-lending to customers. It said the measures will soften the near-term credit negative impact on NBFCs’ funding and liquidity.