Jubilee Post News & Views
Kumar Bhavesh Chandra
India aptly followed norms of Janata curfew on Sunday and showed its determination to fight out coronavirus. Monday was different with news of lockdown coming from different parts of the country the share markets fall was significant for the economy.
Economic crisis has touched all the countries in the world and India too isn’t untouched from this phenomenon. On Monday Sensex recorded a fall of over 2300 points at the day’s start only. Nifty too remained down and 9% fall was recorded.
The uncertainity for share market was such that in the first 15-minutes the investors lost 8 lakh crore and about 150-shares touch their lower circuit or we may understand they reached their lowest positions.
About 340 shares had reached their lowest price of 52 weeks. The BSE fell 10% hence it was decided to close market for 45 minutes. India has started actual fight against corona now. On the call by the PM Janata Curfew was observed.
At present lock down has started in a few states and in some of its districts. The market of food, health, and other items will be badly hit. Railways, metro, state transport and other services too are closed. It will give a big revenue loss.
India has limited flight services and only domestic ones are allowed to fly. International ones are closed as in many other countries and this has a direct impact upon tourism industry and the people who earn from this business. European countries have stalled all tourists from coming on its land and America has even refused to allow airplanes from Europe to land.
These restrictions have had an impact upon hotel business too. You may imagine the impact by the scene in Indian cities where hotels are closed due to lock down. People have piled stock of food grains and made the business run partially but with poor consumption this market will have an impact in the coming days.
The industrial production will go down. All government and private offices are closed due to coronavirus. As industrial units are closed so the impact will be upon products. There is uncertainty in Indian upon till when this situation will till when. It is obvious that at present the calculation of the impact is not possible.
In countries like China the industrial production went down by 13.5% and in India where the situation was not good even earlier where will the situation go. Construction, power generation, and basic amenities all have recorded a down fall. The December 2019 figures were less by .3% as compared to previous year.
The dream to become a 5 trillion economy will get a big jerk by this coronavirus. The claim that Nirmala Sitaraman had made for a strong economy during her budget speech will also be shattered. India has to take some decision to bring back economy in a better position.
One thing could be to put a halt on the rise in pay of government employees and also cut unnecessary expenditure. If strong steps are not taken it will result in to a big jerk. But all Indians have a responsibility to act with patience and stand strong to come out of this.
