“For 21 days, forget what going out means.” Indian prime minister Narendra Modi put his 1.3 billion people on lockdown last week. Officials had become alarmed that a rapid rise in cases of Covid-19 would overwhelm India’s fragile health-care system, says Abhishek Vishnoi on Bloomberg. Policymakers promised to step in with a $22.6bn spending plan, while the Reserve Bank of India has cut interest rates by 0.75% down to 4.4%. The local BSE Sensex Index still fell by 28.6%% between January and March, its worst-ever quarter.
The stakes for Modi are high, says Sadanand Dhume in The Wall Street Journal. A successful fight against Covid-19 will cement his reputation as a powerful, reforming leader. Yet a serious outbreak could trigger “widespread and unpredictable social and political upheaval”.
Narendra Modi has form when it comes to making bold announcements, notes Amy Kazmin in the Financial Times. In 2016 he invalidated 86% of the country’s currency overnight in an attempt to crack down on tax evasion, but the state was unprepared for the ensuing chaos. This time the pattern is repeating itself. The urban middle class had been advised to rely on e-commerce, but nobody told the police, who have resorted to “beating couriers making deliveries and shutting logistics warehouses”. The plight of India’s army of casual labourers, who rely on daily wages to eat, is far worse. Modi failed to explain how millions of people were supposed to get by for three weeks without work. The informal sector which employs these workers is the backbone of the Indian economy.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
On a price/earnings ratio of 18 the Indian market is now far more reasonably priced than in January. Yet given massive uncertainty about the management of the ongoing lockdown and the epidemic, it may be better to wait and see before jumping in.
-
UK-US trade deal announced: US cuts tariffs on UK car imports to 10%Keir Starmer and Donald Trump have announced a UK-US trade deal, but the US president has refused to lift baseline tariffs on most UK goods. What does it mean for the UK?
-
How to use mid-caps to diversify from the USMedium sized companies are overlooked by investors but could offer an attractive ‘sweet spot’. We consider the case for mid-caps amid market volatility.
-
Modi’s reforms set Indian stocks on fireIndian stocks pass a new milestone, but global fund managers are holding back. Are there signs of overheating?
-
Halifax: House price slump continues as prices slide for the sixth consecutive monthUK house prices fell again in September as buyers returned, but the slowdown was not as fast as anticipated, latest Halifax data shows. Where are house prices falling the most?
-
Rents hit a record high - but is the opportunity for buy-to-let investors still strong?UK rent prices have hit a record high with the average hitting over £1,200 a month says Rightmove. Are there still opportunities in buy-to-let?
-
Pension savers turn to gold investmentsInvestors are racing to buy gold to protect their pensions from a stock market correction and high inflation, experts say
-
Where to find the best returns from student accommodationStudent accommodation can be a lucrative investment if you know where to look.
-
The world’s best bargain stocksSearching for bargain stocks with Alec Cutler of the Orbis Global Balanced Fund, who tells Andrew Van Sickle which sectors are being overlooked.
-
Revealed: the cheapest cities to own a home in BritainNew research reveals the cheapest cities to own a home, taking account of mortgage payments, utility bills and council tax
-
UK recession: How to protect your portfolioAs the UK recession is confirmed, we look at ways to protect your wealth.
