Nomura Global Markets Research flagged that the sharp resurgence in pandemic cases in some states and the expected spike due to upcoming elections in five states may have a deeper effect if mobility gets affected.
The Nomura India Business Resumption Index (NIBRI) fell to 95.2 for the week ended March 7 versus 98.5 in the week before as both the Apple driving index and the Google retail and recreation indices took a hit while power demand and labour participation rates fell as Covid cases rose.
“However, in our view, this threatens near-term normality equilibrium, rather than triggering more serious economic damage,” the research firm said.
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