Goldman Sachs, a Wall Street brokerage company amidst the second wave of Coronavirus in India, has lowered India’s growth forecast for the current fiscal year 2021-22 from 10.9 percent to 10.5 percent. Apart from this, the brokerage has also reduced its estimates of the stock markets and earnings. In India, cases of Kovid-19 are reaching new records daily. Also, lockdown is also increasing in various states. In a detailed note released on Tuesday, economists of Goldman Sachs, led by Sunil Kaul, said that the rise in concern has been raised due to the epidemic cases coming on record and strict lockdown imposed by several major states. Due to this, investors are apprehensive about the macroeconomy and improvement in income.
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Goldman Sachs has reduced India’s real gross domestic product (GDP) growth forecast for 2021 from 10.9 percent to 10.5 percent. The brokerage company estimates that this will also affect the June quarter growth. With this, Goldman Sachs has reduced the estimate of income growth in 2021 from 27 percent to 24 percent. The brokerage forecasts that revival will resume from July after easing the restrictions and increasing the pace of vaccination.
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The note states that the crisis of confidence is also visible in the stock markets. The Nifty lost 3.5 percent on Monday alone. Goldman’s Sache has reduced the growth forecast for the second quarter of June. However, he has not given any data for this. However, the note has expressed hope that the total impact of all these things will be minor, as the curbs have been imposed in some areas.
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