All posts tagged: marketoutlook

Market Overview – June 2021

Global Stock Markets

Global equity markets continued to generate positive returns for the quarter as vaccination pace accelerated in most developed economies. Additionally, governments of most developed countries continued to ease COVID related mobility restrictions and activity levels picked up. This has resulted in global trade volumes showing a V-shaped bounce back and stimulus measures resulting in improved purchasing power for consumers with consumer spending already exceeding pre-COVID levels in USA.

The key risk to global growth recovery could emanate from potential re-acceleration in COVID cases leading to disruptions in coming quarters. Also, US Federal Reserve indicated that interest rate hikes could be sooner than expected due to rising inflation.

Indian Economy

RBI in its latest reports stated that “The tapering of 2nd COVID wave along with aggressive vaccination push have brightened the near-term growth prospects for the Indian economy and GDP growth for Q1’22 was estimated at 22.7%”.

Indian Stock Markets

India stock markets marched to new lifetime highs with the benchmark (NIFTY 50) crossing 16,000 mark in 1st week of August. The rally was driven by strong positive inflows, good earnings season and positive developments on the vaccine front alongwith steady decline in cases which boosted confidence in economic recovery.

Vishal ShahMarket Overview – June 2021
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Market Overview – December 2020

Indian Economy

RBI in its December policy meeting upgraded India’s GDP forecast and expects economy to shrink 7.5% this fiscal vs earlier forecast of 9.5% contraction as the economy is recuperating faster than anticipated. Further, even the IMF upgraded its forecast for GDP growth in FY22 (8.8% growth earlier to 11.5% growth) making it the only key nation to record a double-digit growth and reclaim the status of world’s fastest growing major economy.

Additionally, RBI expects growth to be in positive trajectory for Oct-Dec 2020 period and predicts a V-shaped recovery in FY21 driven by rollout of vaccine. Also, since mid-September, India has done well to flatten the curve of Covid-19 cases. The number of active cases had fallen to 1.5 lakh from a peak of 10 lakh cases in September.

Vishal ShahMarket Overview – December 2020
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