India covid-19 economy infection India

Market mood swings higher, but earnings may bring it back to ground

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Mood swings are not uncommon with stock markets. But the pace at which global and domestic markets rebounded due to the dip in new covid-19 infection rates is still remarkable.

The S&P 500 jumped 7.73% on Monday, and rose 2.5% in early trade on Tuesday. The Indian markets, which were closed on Monday, played catch up, with the Nifty 50 index leaping by 8.76% on Tuesday.

Of course, this bounce up should be seen in the backdrop of the sharp waterfall-like drop in indices since mid-February. Nevertheless, investors are hoping that containment measures being put in place will set businesses back on their feet in the next 2-3 months.

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