India recorded its highest case count for a 24 hour period at over 1 lakh fresh COVID cases evoking fear that the second wave is here. This is the highest daily spike since the pandemic started in India; during the first wave, the highest daily rise was reported on 17th September last year at 97,894 fresh cases. This has caused a wave of concern in the minds of investors once again, since along with the rising case count looms the threat of lockdowns, curfews, and imposed restrictions. Maharashtra Govt has already announced severe restrictions including shut-down of private offices, malls, restaurants and theatres.
All this is expected to lead to high levels of volatility in the market in the coming days. Sensex recorded a net loss of 870 points yesterday reflecting investor concerns. Though macro indicators for March were very positive with GST collections at Rs. 1.23 lakh crore, highest since it was introduced. Yet the fears of the economic recovery not being sustained are likely to weigh heavily in the minds of investors in the near term. The situation is likely to remain fluid as no one can predict the course the pandemic will take over next few weeks.