The Indian economy and the stock markets seem to have a disconnect with each other as on one hand the consumer sentiments seems to be hit hard by the COVID-19 and on the other hand the stock markets made all time high.
Consumer
sales and sentiments has been severely hit by the 2nd wave of COVID-19
Auto Vehicles: The auto sector also saw sales coming down by 50% from 2,86,728 units sold in April 2021 to just 1,03,000 in May 2021. People postponed their buying decision as sentiment is hit due to rise in cases and economic uncertainty.
Mobile sales down: Smart phones fell by more than 50% in the month of May 2021 as consumers preferred to save money and postpone the discretionary spending.
RBI monetary policy support: The RBI has kept the interest rates on hold as it feels that still the economy needs lower level of interest rates for the demand and consumption to pick up. Though RBI has supported the economy by extending the loan restructuring amount from Rs. 25 crores to Rs. 50 crores loans.
Stock markets at all time high: The Indian stock markets made all time high as the flows from the foreign investors continued. Though the valuations seem to be higher but then future growth prospects of the Indian economy seems to be fueling the growth of the markets. The FIIs so far in 2021 have invested Rs. 57000 crores in the Indian markets.
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