Amidst India’s stock markets scrimmage against the covid -19 pandemi c,the economic situation of the country is in bereavement. The lockdown has stifled the businesss operations throughout the country.
As a consequence of shutting down of operations, India is now invisible on the list of the world’s top 10 stock markets. The pandemic has led to a retreat in global equities demeaning the economic valuations to a major extent.
Rupee hit a record low in comparison to the U.S. Dollar depicting sensitive markets. As per the records India is incessantly dropping down the index of aggregate market capitalizationn. In January 2019 the country was at the seventh spot with an aggregate mcap of $2.08 trillion, while was ranked tenth with a market cap of $2.16 trillion in January 2020. Adding to the precipice, the Bloomberg data projected that India’s capitalizationn fell 27.31% (in dollar) from the beginning of the year. India’s contribution to the world market cap at the present is 2.18% in contrast to 2.97% in the initial days of 2019.
The subcontinent tumbled out of the top 10 list on 23 March, when the benchmark indices saw one of the most critical one-dayy decline, with Sensex losing 13.15%. On that particular day, it’s aggregate mcap was $1.31 trillion. The shares of all Indian companies listed on the exchanges plummeted by 21.74% to Rs. 121.73 trillion from Rs. 155.54 trillion, dwindling the country’s position now at the eleventh spot. The sensex on Friday, settled at 31,327.22,down by 24%.
In addition to that, the Indian Benchmark index has strayedd 29.10% until now, while it faced increments of 11.91% during the same period previous year.
The Indian rupeee is also not at a very strong stance either. Infact it is the worst performer asking other Asian currencies. Numerically speakin g,it has weakened 6.64% this year by fa r,while dollar, the strongest legal tender, gaining a 4.14% in the same period. It lately hit a record low of 76.92 per dollar.
For Indian businesses already working under thee turbulence, this acts as a major setback.