Top India Stock Fund Warns of Correction as Virus Runs Amok
- Equity market ignoring the present situation: Nippon’s Rachh
- Sensex slides 1% in early trade Tuesday amid broad Asia rout
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Investors in India’s $2.8 trillion equity market are underestimating the economic impact from the world’s worst coronavirus outbreak, which will delay any recovery and could trigger a “correction” in stocks, according to the country’s top-performing fund manager.
The benchmark S&P BSE Sensex climbed in each of the last two weeks, a period during which the nation’s tally of daily virus infections as well as related deaths have hit records. Domestic institutional investors, including mutual funds and insurers, poured a net $1.5 billion into stocks in April, helping offset a similar outflow from foreign funds. That trend has continued so far in May.