<p>Weighed down by the threat to the stability of the financial system and lagging pre-covid economy, Indian equity markets are yet to come out of the effect of COVID-19 pandemic. Indian markets are joined by equity markets in Hong Kong as well among the major economies.</p>.<p>Other than these two equity markets, all other major global equities are right now trading at a premium level, over their March 9, 2020 close -- a day prior to the date when World Health Organisation declared coronavirus outbreak as a pandemic.</p>.<p>India’s Nifty 50 is trading at 3.7% below the pre-pandemic level, while Hong Kong’s Hang Seng is 2.9% down. </p>.<p>“The Indian equity markets were weaker going into the Covid crisis.</p>.<p>The Indian markets had other problems like the Yes Bank crisis, the NBFC crisis and slowing growth before we hit the Covid-19 wall. The Indian economy was facing headwinds even prior to the bloodbath witnessed in March,” analysts said. </p>.<p>However, China’s move to curb protests in a more strict way played the spoilsport for Hong Kong, which is a special administrative region (SAR) within China.</p>.<p>Among other major indices, Nikkei 225 is trading 14.6% higher than its pre-pandemic levels. On the other hand, Dow 30 of the US is trading at a 7.9% higher level than the level before WHO declared coronavirus as pandemic. </p>.<p>Morgan Stanley Capital International (MSCI) World Index is also trading at a 10% higher level, after global equities witnessed a massive rally in May 2020. </p>.<p>On the other hand, MSCI Emerging Markets, which is more relevant for India for peer benchmarking, is also trading at a premium of 2.1% over its pre-pandemic levels.</p>.<p>However, even as the Indian markets are lagging behind the global peers in recovery, the markets have recovered 32% from the bottoms it touched on March 23 -- a rally which market watchers say isn’t sustainable.</p>
<p>Weighed down by the threat to the stability of the financial system and lagging pre-covid economy, Indian equity markets are yet to come out of the effect of COVID-19 pandemic. Indian markets are joined by equity markets in Hong Kong as well among the major economies.</p>.<p>Other than these two equity markets, all other major global equities are right now trading at a premium level, over their March 9, 2020 close -- a day prior to the date when World Health Organisation declared coronavirus outbreak as a pandemic.</p>.<p>India’s Nifty 50 is trading at 3.7% below the pre-pandemic level, while Hong Kong’s Hang Seng is 2.9% down. </p>.<p>“The Indian equity markets were weaker going into the Covid crisis.</p>.<p>The Indian markets had other problems like the Yes Bank crisis, the NBFC crisis and slowing growth before we hit the Covid-19 wall. The Indian economy was facing headwinds even prior to the bloodbath witnessed in March,” analysts said. </p>.<p>However, China’s move to curb protests in a more strict way played the spoilsport for Hong Kong, which is a special administrative region (SAR) within China.</p>.<p>Among other major indices, Nikkei 225 is trading 14.6% higher than its pre-pandemic levels. On the other hand, Dow 30 of the US is trading at a 7.9% higher level than the level before WHO declared coronavirus as pandemic. </p>.<p>Morgan Stanley Capital International (MSCI) World Index is also trading at a 10% higher level, after global equities witnessed a massive rally in May 2020. </p>.<p>On the other hand, MSCI Emerging Markets, which is more relevant for India for peer benchmarking, is also trading at a premium of 2.1% over its pre-pandemic levels.</p>.<p>However, even as the Indian markets are lagging behind the global peers in recovery, the markets have recovered 32% from the bottoms it touched on March 23 -- a rally which market watchers say isn’t sustainable.</p>
