The stock markets ended last week marginally lower as most benchmark indices witnessed selling pressure. Banking led the way in losses like you can see under markets update. The losses can be explained by Covid-19’s resurgence as the second wave threatens economic recovery. Moreover, investors were nervous ahead of RBI’s monetary policy meeting this week, which led to some broad-based selling.
Before moving into market updates, below is a quote for this week. 🙂
Quote of the week
Investing is one of the only fields where doing nothing is a competitive advantage.
Deposit growth, which measures the growth in commercial bank deposits stood at 11.4% in the fortnight ended March 26th, 2021 when compared to the same period last year.
Loan growth, which measures the growth in commercial bank loansstood at 5.6% in the fortnight ended March 26th, 2021 when compared to the same period last year.
Repo and reverse reporates are the primary tools that the RBI uses to control the level of interest rates in the economy. RBI kept repo and reverse repo rates unchanged at 4% and 3.35% respectively.
The India Manufacturing PMI measures the performance of the manufacturing sector. In March, the Manufacturing PMI stood at 55.4, the lowest since August 2020. The India Services PMI measures the performance of the services sector. In March, the Services PMI declined to 54.6 from 55.3 in the previous month, slightly above market expectations of 54.5.
Foreign Exchange Reserves in India decreased to$576.87 billion on April 02 from $579.29 billion in the previous week.
Ok, so?
The non-bankers will bank!
The banking and financial services industry forms the backbone of an economy. It ensures the smooth flow of resources to relevant pockets of the economy which helps spur growth. However, because of its importance, there have always been restrictions in banking procedures to keep the system secure and risk-free.
Recent developments from the government have strived to maintain utmost security while also relaxing some of the norms in banking. One such is the fact that non-banking institutions like e-wallets and credit cards will enjoy some relaxed procedures. This will help banking and financial services to reach a wider set of people. Okay, so how does this affect you? Click below to find out!
Imagine trying to transfer some money from your amazonpay wallet to your friend's @Paytm wallet. Or maybe from a company's wallet to your bank account.
Most recent RBI regulations might make these possible and seamless.
India's Q2 GDP performance stole the show, clocking in at an impressive 7.6%, a pleasant surprise that outpaced the general consensus. Notably, India maintained its lead over China, which posted a GDP growth of 4.9% in the July-September quarter.
Last week on the D-street was like an IPO carnival! The initial public offering (IPO) market seems to be in an unprecedented bull wave, with the debut of five IPOs aiming to raise ₹7,400 crore from investors. This is no small feat — five IPOs in a week is a rare sight.
So, diving into this week, let's explore India's consumption story. Amidst all the talk about India becoming a major economy, increased consumption stands out as a crucial pillar for this growth.
Even in the tough times of 2020, the festive season was a saving grace, injecting a much-needed boost into the economy. It's incredible how the Indian consumer wields such influence.
So, diving into this week, let's explore India's consumption story. Amidst all the talk about India becoming a major economy, increased consumption stands out as a crucial pillar for this growth.