Stay-at-home measures triggered by the coronavirus
pandemic has kept most of India’s 1.3 billion population indoors since late March, leading to a collapse in business activities. Goldman Sachs
Group Inc. expects gross domestic product to contract 5% in the fiscal year through March 2021, which would be India’s deepest recession ever. Meanwhile analysts have cut earnings forecasts for the Nifty 50 measure over the next 12 months by 13% since January, as India begins a phased lifting of the lockdown
“We are expecting flattish profits, no growth, for the 2021 fiscal year,” said Gautam Duggad, head of research at Motilal Oswal Securities Ltd. He still sees more downside risks of earnings getting cut further “as we move forward and second or third order impacts manifest themselves.”
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