WORLD GOING BACK IN NORMAL STAGE

 

                                                        

World is hopeful that the vaccination drive will bring the world to normal stage. India started its vaccination drive on 16 January by targeting around 30 crore people in the first phase. This sets in more positive outlook for the coming times. Hopefully in the coming months, things would come to normalcy.

The macro economic indictors are also indicating better times as the GST collection has touched Rs. 1.15 lakh crore which is all time high since its inception in July 2017.  The Index of Industrial production has touched 3.6 %  which is in positive zone after the gap of 8 months.  E way bills crossed 6 crore indicating that recovery is catching up speed and Power demand was up by 5.2 % in December 2020. Automobile sector has also witnessed rise in sales in all the segments and this would lead to more job creation in the economy.

Indian stock markets are touching new highs as the flows from the Foreign Institutional Investors does not seem to stop soon. In 2020 the FII have invested Rs 1,68,000 crores in the Indian Stock Market.  With US got new president on 20^th January 2021, hope there is more stability at the Global level which will augur well for the overall world economy.

Globally interest rates are all time low and this will lead to significant flows to continue in the capital markets. RBI has also maintained that it would keep the interest rates low till the economy is completely out of woods.

The key trigger for the economy would  be the BUDGET 2021 which is going to be placed on 1^st February 2021. This will give path to the market about the future reforms and strategic allocation of resources.