The markets have discounted the impact of coronavirus disease and there are positive indicators now in comparison to the situation over the last 2-3 weeks, market expert Ajay Bagga told Zee Business Managing Editor Anil Singhvi. Bagga said that the spread of coronavirus disease is reducing globally, barring India, where the cases have risen because of the ongoing migration happening throughout the country. The market expert was confident of the curve flattening in India in a few weeks too.  

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Bagga said that the markets have already factored in the impact of coronavirus for the April-June quarter and it knows that the results will not be very good for this quarter, globally and in India. He expects a downturn in all major economies including the US, UK, Japan and India.

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On the issue of cure for coronavirus treatment, Bagga said that trials were happening on more than 70 vaccines by different companies including AstraZeneca and Sanofi. In India Serum institute is also ready to supply drugs, when asked to, he added.

In India, the number of cases reported till now is in excess of 1.44 lakh with over 80000 active cases. Around 60000 infected people have already recovered from the disease. Meanwhile, the number of reported deaths have been 4172.  

The biggest worry for markets is the economy and the global markets is the overbought situation, Bagga said. The other major factors are US-China trade war and US elections. It will be interesting to see what US President Donald Trump does to handle the economy, Bagga said warning that many Presidents who lost in their second terms had a slowing economy behind them.

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The USD 3 trillion stimulus has helped the US markets and there is a likelihood of another USD 3 trillion stimulus soon, which could lift the markets in a big way, Bagga said.