Solve the medical crisis, financial situation will improve itself: Nilesh Shah

The world is facing an unprecedented situation - double whammy of  a medical and financial crisis at the same time, but if the medical crisis is dealt with, the financial situation will improve itself, Kotak AMC’s MD Nilesh Shah told Zee Business TV on Monday when stock markets plunged, hitting the lower circuit in initial trading leading to a 45-minute stoppage. Shah said that this is the first time when we are facing a combination of both medical and financial crisis. 

“This is the first time when we are witnessing a combined medical and financial crisis. The 2008 crisis was only financial. In 2020, we are facing a medical crisis which has hit the economy,” he said. 

Recalling his days from the 90s, Shah said that he was in Surat when the city was hit by a plague but dealt with it efficiently, an approach we need to implement at the national level. 

“In the early 90s, I had just joined the markets and there were reports of a plague in Surat. The city witnessed a similar lockdown back then. With the help of the citizens, Surat was converted into a most beautiful city and it ensured that the plague is not spread to other parts of the country,” Shah said.

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“Right now, we need to do something on a national level. If we are able to control the medical crisis, the financial situation will improve itself,” he added. 

The domestic markets continued to remain in red after the 45-minute halt, with equity benchmark Sensex plummeting further to 3,186 points and the broader Nifty sinking below 7,900 level.

Axis Bank was the top loser on Sensex, cracking up to 21 per cent, followed by IndusInd Bank, ICICI Bank, Bajaj Finance, UltraTech Cement and Kotak Bank.