Coronavirus Impact on Stock Market
the largest-ever daily increase in Covid-19 cases, with 1,03,558 new cases
added to the country's total of 1,25,89,067. Maharashtra remained the
worst-affected state in the country, with 57,074 new infections registered on
Sunday, the highest daily increase ever. With 11,163 new infections, Mumbai,
India's financial capital, saw its highest-ever single-day rise, taking the
total number of cases to 4,52,445 in the city.
Government imposed a fresh set of restrictions, amidst the worsening situation
with high number of new Covid-19 cases being recorded. The second wave is
resulting to be even more dangerous than the first in 2020. The restrictions
also included a weekend lockdown to curb the surge in Covid cases.
a Cabinet meeting, chief minister Uddhav Thackeray announced the restrictions.
While addressing on Friday, the chief minister cautioned that if the bleak
situation continued, lockdown would be imposed. The state's weekend lockdown
will begin at 8 p.m. on Friday and last until 7 a.m. on Monday. From 8 p.m. to
7 a.m., a night curfew will be in effect. These restrictions are not enforced
to essential services.
Maharashtra, here's a summary of what's open and what's closed. These
restrictions will be applicable till April 30th.
service will continue to function. E-commerce is allowed, but those engaged in
these activities must be vaccinated in compliance with GoI guidelines and bring
a negative RT-PCR certificate which will be valid for 15 days. The
regulation will take effect from April 10th.
Government offices would only be able to run at 50% capacity.
insurance, the stock exchange, energy, water supply, medical care,
telecommunications, and financial services will all continue to operate
Construction sites would only be able to operate if the workers reside on-site.
Newspapers can be printed and distributed.
transportation: Auto rickshaws with a driver and two passengers are allowed to
run. According to the RTO, taxis with a driver and 50 percent capacity are
permitted. Buses are permitted to hold their maximum seating capacity, but no
standing passengers are permitted.
transportation is permitted to operate from 7 a.m. to 8 p.m. Monday to Friday,
with exceptions for emergencies.
films, serials, and advertisements are permitted. However, filming scenes that
include a large crowd should be avoided.
functions with a maximum of 50 people are permitted.
Funerals are limited to a maximum of 20 people.
for essential service stores, all shops, markets, and malls will be closed
during the day. These stores would have to ensure that their employees follow
all necessary guidelines of Covid-19.
Entertainment venues such as theatres, cinemas, video parlors, multiplexes,
bars, swimming pools, sports complexes, auditoriums, and water parks will be
Playgrounds and parks will be closed
Devotees' places of worship will also be closed, but religious activities will
continue. Priests and workers at religious institutions should get vaccinated
spas, and shopping malls will be closed.
and all public places will be closed from 8 pm to 7 am from Monday to Thursday
and from 8 pm on Friday to 7 am on Monday.
will be no classes in schools, universities, or private coaching. Class 10th
and 12th candidates, on the other hand are granted exam exemptions.
restaurants and bars will be closed, with the exception to those that are
part of hotels and those located in campus. Monday to Friday, from 7 a.m. to 8
p.m., takeaway, parcels, and home deliveries are permitted. Only home delivery
is permitted on weekends from 7 a.m. to 8 p.m.
religious, social, cultural, or political functions allowed.
Starting April 10, any industrial process that is a net user of oxygen as a raw
material will be disallowed by default.
Effect on markets
implication of Lockdown by Maharashtra government spooked the market investors
and traders. Furthermore, a poor macroeconomic print added fuel to the flames,
raising the fears about the economy's speed and strength. The market's selling was mostly broad-based,
with only stocks in the information technology (IT) and metals sectors managing
to stay afloat, while PSU bank stocks took the brunt of the blow. The
volatility index increased by more than 6% to 21.21.
next few days, markets will monitor how the Covid situation plays out in
Maharashtra and other states, especially those where the cases are on the rise.
With Q4 earnings, increasing Covid cases, and higher bond yields among the
factors that are likely to decide the trend, though experts say, April is
likely to be a highly volatile month for the markets.