The Indian stock markets have been witnessing an unprecedented run over the last couple of weeks. Last week was no different, as markets kept chasing newer highs to end the week in green. Sensex surpassed the 52k level and Nifty inched closer to 16k as global liquidity and hopes of a strong recovery take investors by storm.
It was an important week for the markets as investors were closely looking out for key macroeconomic indicators like GDP growth and interest rate decisions by the RBI, etc. Before getting to those, let’s look at some benchmark levels below…
Markets Update
Nifty 50
15,670.25
1.52% ▲
Sensex
52,100.05
1.32% ▲
Nifty 500
13,393.90
2.11% ▲
Bank Nifty
35,291.65
0.43% ▲
The Big Picture
The Indian economy’s GDP growth stood at 1.6% in the period from January – March 2021 when compared to the same period last year. It was the 2nd straight quarter of growth since the country exited a pandemic-induced recession.
The RBI left its benchmark interest rates – repo rate and reverse repo rates unchanged at 4% and 3.35% respectively – during its June meeting. It announced additional bond purchases, saying it was maintaining an accommodative monetary policy stance. This means that the central bank is willing to further lower rates and inject money into the economy as long as necessary to support the economic recovery and to help mitigate the negative impact of COVID-19.
India’s infrastructure output, which measures the performance of industries like steel, coal, natural gas, electricity, etc. jumped by 56.1% year-on-year in April 2021 when compared to the same period last year – this is the biggest gain since records began in 2005.
India’s fiscal deficit, which is the difference between government revenues and expenses, fell sharply to ₹0.79 lakh crores in April 2021.
As per RBI data, the value of commercial bank deposits and commercial bank loans grew by 9.7% and 6% respectively in the fortnight ended May 21st, 2021.
Ok, so?
A blessing for the private housing market!
Renting out property in India can be a tedious task – both for the tenant and the owner. One major criticism that our govt has received is its stance on protecting property rights. Any growing economy must have an efficient framework of protecting people’s property rights – both intellectual as well as physical property.
Working in this direction, the government has finally passed the Model Tenancy Act (MTA). With this, it aims to streamline the process of renting property and hence tackle the problem of acute vacancy in properties across urban markets. This might be a game-changer for private housing. Okay, so why should you care? Click below to find out!
Rent courts and authorities are overwhelmed with housing-related disputes between owners and tenants, which discourages owners from renting out their property as they fear they might not get it back. This is set to change with the new Model Tenancy Act. Ok, so? Find out below! pic.twitter.com/35kMmMzuSH
Last week, India was buzzing with excitement thanks to the G20 summit, and this enthusiasm spilt over to the stock market. The Nifty achieved the remarkable milestone of 20,000 mark for the very first time. One of the reasons for this was the G20 summit announcements which grabbed the interest of both domestic and foreign investors. So, let’s unpack what exactly happened at the G20 summit and how can it affect the stock market.
In the April-June quarter, India's GDP grew by 7.8% – the highest growth we've seen in four quarters. While other global economies like China are struggling amidst a global slowdown, India is out here defying the norm. No wonder the IMF expects India to have one of the highest economic growth in this FY24.
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