As analysts struggle to assess India Inc.’s corporate earnings and debt-servicing capabilities amid the nationwide lockdown due to the coronavirus pandemic, they have begun relying on alternative indicators to inform their investment recommendations.
Equity analysts speaking in interviews with Bloomberg highlighted measures ranging from volatility and cash levels to less conventional factors including daily infection numbers.
So far, the drop in analyst price targets for the NSE Nifty 50 Index has trailed the actual slump in the stock gauge. Market participants appeared more optimistic on Tuesday as China reported no new coronavirus deaths for the first time, with India’s broader S&P BSE Sensex Index posting its best day since May 2009.