Fresh curbs hit business activity

The Nomura India Business Resumption Index fell sharply for the first time in many months, as the third wave-induced state restrictions hit mobility. The financial services firm in a note Monday said the overall economic growth would rebound once Omicron-led cases peak, restricting the impact to the ongoing January-March quarter.

Nomura India Business Resumption Index, which tracks and compares the activity for a particular week, fell sharply by 10 percentage points (pp) to 109.9 for the week ended January 9 from a downwardly revised 119.8 during the prior week (120.3 previously). The drop in index, it said, was largely due to an anomalous 50pp weekly fall in the Apple driving index. The Google retail & recreation mobility index fell by 5.6pp, while workplace mobility fell by 0.7pp, it noted.


However, even with the fall, the index is still 10 percentage points above pre-pandemic levels, the firm highlighted.

"The third wave is rapidly spreading...Voluntary pull backs and state restrictions are starting to bite, as evidenced by the fall in mobility and airline traffic," Nomura said.