What are the various reasons behind the recent crumbling of Indian equities market despite the government announcing many relief measures?
The Indian equity indices crashed due to weak global cues and erased all of the gains registered on previous days despite the government continued to announce more sops to support the economy.
While the fresh set of incentives for farmers, street vendors and migrant workers, among others, was announced after market hours, investor sentiment took a hit after the U.S. Federal Reserve hinted at a long period of economic weakness due to COVID-19.
Also, reports of fresh clusters of COVID-19 cases in countries such as China, South Korea and Hong Kong dented investor sentiment .
The rise in COVID-19 cases and a lack of clarity on the impact of stimulus packages were weighing on the sentiment.
Moreover the economic package has mainly focussed on the MSMEs and the results of the package would take it’s own time to come and hence, the markets are not showing enough confidence towards the same.
