- KredX Editorial Team
- 08 Jun 21
- Investor

With India registering approximately 1 lakh cases a day, several parts of our country are on the verge of total lockdowns.
Metropolitan cities have already started weekend and night curfews as more states move towards completely shutting down if the situation does not improve.
The country is already facing the brunt of a second wave when it hadn’t completely recovered from the first wave.
All of this has already started affecting the broader market. Nifty is down 6.5% since peaking in February. This second wave can knock off as much as 2.8% of RBI’s expected GDP growth for FY2022, derailing the recovery plans in the economy.
With millions of millennials pouring into the stock market, a question lingering on everyone’s mind is what this situation means for the investors.
Let’s take a deeper look into the impact of the second wave of COVID on the stock market and how investors should act in such turbulent times.
COVID And India’s Economic Growth Scenario
The Indian stock market’s passive reaction to the pandemic is puzzling at best. Stalling economic activities has led to an unprecedented negative impact on global economies, but the severity and direction are yet to be quantified. The government has pushed stimulus packages to restore confidence in the financial markets and boost liquidity. As a result, the NIBRI indicator is down 3 points in the third week of May, levels last seen in June 2020 following a recovery. The economic impact in this second wave may not be as severe as last year, especially since manufacturing activity has not come to an absolute standstill. When the COVID surge became apparent in early April, IMF slashed its output growth forecast by 1% after the seasonally adjusted PMI published by IHS Markit fell to a seven-month low. Even the RBI has refrained from increasing its fiscal growth output, while the government expects GST collections to fall below Rs. 1 trillion in July 2021.Impact Of 2nd Covid-19 Wave On Investments
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Effect Of Lockdowns On The Indian Stock Market
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Real Estate
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Gold