Investors are bracing for market fallout as state after state locks itself down in India to contain the spread of the coronavirus as infections and deaths surge. More than two thirds of states are shut if assessed by their contribution to national output, analysts at Jefferies calculated last week. All of that is forcing a reassessment among investors who had hoped that less-severe curbs would soften the blow to economic growth. Investors will be watching key macroeconomic data including inflation and factory output this week as well as the vaccine drive, he said. Vaccine shortages have complicated efforts to tame the outbreak, leaving investors assessing Modi’s next moves and guessing how long states will have to remain shut.

Source: Mint May 10, 2021 02:03 UTC