of strict lockdowns in several states may hurt sentiment ahead, Ajit Mishra, vice president for research at Religare Broking Ltd., wrote in a report. Investors
will be watching key macroeconomic data including inflation and factory output this week as well as the vaccine drive, he said.
Vaccine shortages have complicated efforts to tame the outbreak, leaving investors assessing Modi’s next moves and guessing how long states will have to remain shut. Amid the uncertainty, foreign investors pulled $1.9 billion from India’s stocks and debt in April, the biggest outflow in a year, according to data compiled by Bloomberg.
“While India has refrained from a national lockdown thus far given its huge economic costs, the scales are tipping fast towards humanitarian benefits of curbing mass transmission, as new infections continue to rise with no peak in sight,” said Chang Wei Liang, an analyst at DBS Bank. “Even without a lockdown, mobility data for Indian cities are already showing that less and less people are moving out of their homes. This implies a natural brake to retail spending and business investment, until mass viral transmission ceases.”
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