SIGNS OF ECONOMIC RECOVERY AFTER THE COVID-19 EPIDEMIC

                   

The Indian stock market has been witnessing new highs and the economy is also showing strong signs of revival. The BSE INDEX touched all time high of 46000 levels with the FII pouring in Rs. 61000 crore in the month of November and continued their flows in the month of December 2020. The GDP which showed strong recovery from -23.9 % to  -7.5 % came as a huge positive surprise as majority of the rating agencies and global bodies had projected GDP to come around -10%.

GST collection for the month of November crossed again Rs. 1 lakh crore mark and in October also they had crossed Rs. 1.05 lakh crore. Tis shows that the economy is showing sign of strong recovery as businesses are going back to normal levels. The IIP index which was in negative zone has come to 3.62 % which indicates that the recovery is going to be very strong in the coming times. The auto sector has also registered good sales as all the automobile companies whether it is two or four wheeler have registered 25 % rise in sales.  

The Central Bank has already indicated that the interest rates will be lower for quite sometime and that would mean that demand and consumption will rise in the economy as the Repo rate is at 4 %. The FD rates are at 5.15 % and the home loan rate is 6.9 % which is very attractive.

Hopefully in January 2021 the vaccination starts in India and it will end the coronavirus issue which has disrupted the life.