Lockdown extension was expected; stimulus measures are a disappointment

The government's recent stimulus measures, however, may disappoint the market because they were expecting huge fresh liquidity infusion into the system to improve the aggregate demand

The extension of nationwide lockdown until May 31 is not completely unexpected. When India started lockdown in March, it ranked 60th in terms of the number of Coronavirus (Covid-19) cases in the world and has risen through the ranks since then. The number of cases in India has been growing at a steady pace and the markets had anticipated this to some extent. As a result, a major impact on the markets is ruled out for now.

The government’s recent stimulus measures, however, may disappoint the market. That’s because they were expecting huge fresh liquidity infusion into the system to improve