India under 21-day lockdown: Here's what brokerages have to say

SUMMARY

Prime Minister Narendra Modi, while addressing the nation for the second time on coronavirus on Tuesday, announced a complete lockdown across India for 21 days starting 12 am. “The country will be set back by 21 years if we don't manage these 21 days,” the PM said in a televised address on March 24. Here's what brokerages have to say on the lockdown:

By CNBC-TV18Mar 25, 2020 8:58:54 AM IST (Published)

JPMorgan on India: Lockdown steepens the economic cost curve in the near-term and quantifying the cost with any degree of certainty will be very difficult, said the brokerage. It expects about 60 percent of the GDP to be significantly impacted by the lockdown.

Deutsche Bank on India: As per the brokerage, nationwide lockdown pushes India into uncharted territory and implies a negative GDP print. It added that there is a need for coordinated and front-loaded fiscal stimulus.

Barclays on India: The brokerage sees another 8 weeks of partial shutdowns across the country till May end. It cut its CY20 GDP forecast from 4.5 percent earlier to 2.5 percent.

CLSA on Bharti Airtel: The brokerage reiterated 'buy' call on the stock but cut target to Rs 590 per share from Rs 680 earlier. It said that COVID-19's hit is likely to be moderate and medium-term growth would be led by December 19 tariff hikes.