Why stock markets are resilient now

If the earnings slow, interest rates rise or there is an external shock, the market will fall sharply

One of the most baffling paradoxes currently confronting us is the inexorable rise of the stock markets through the second half of FY21. Why are the markets so resilient in the face of a raging second wave of Covid, which started in mid-March? After all, India is undergoing “its most horrific calamity since its violent partition and independence nearly 75 years ago”, as perceptive commentator Andy Mukherjee wrote recently for Bloomberg. “New daily Covid-19 infections have remained above 300,000 for two weeks now, the worst caseload the world has seen … the fear of the virus is pervasive. Even the