Weekly Market Wrap: RBI surprise meet uplifts markets šŸ¦ | Web News Observer

Weekly Market Wrap: RBI surprise meet uplifts markets šŸ¦

Last week the stock markets ended the week in green. While we are currently amid a raging pandemic that has adversely impacted our healthcare system and our economy, two particular reasons contributed to the rising markets.

First, and the more important one, the RBI decided to have a surprise meeting to address the situation caused by the pandemic. RBI governor Shaktikanta Das unveiled a series of measures to help support the healthcare and infrastructure sectors and small borrowers impacted by the second wave of Covid-19. Secondly, global cues remained strong, which also uplifted investor sentiment.

Anyway, before moving on, hereā€™s a quote for the week that helps us think about risk.

Quote of the week

ā€œRisk and time are opposite sides of the same coin. If there were no tomorrow, there would be no risk.ā€

The Big Picture

  • Indiaā€™sĀ trade deficit, which is the difference between a countryā€™s imports and exports,Ā widened to $15.24 billionĀ in April 2021. This is much higher than the $6.76 billion in the same period last year.
  • Deposit growth, which measures the growth in commercial bank deposits, stood at 10.3% in the fortnight ended Apr 23rd, 2021, compared to the same period last year.
  • Loan growth, which measures the growth in commercial bank loans, stood at 5.7% in the fortnight ended Apr 23rd, 2021, compared to the same period last year.
  • The India Manufacturing PMI measures the performance of the manufacturing sector. In April, the Manufacturing PMI stood at 55.5, beating market expectations of 51.6 ā€“ indicating good improvement in the sector’s health.
  • TheĀ India Services PMIĀ measures the performance of theĀ services sector. In April, the Services PMIĀ declined to 54Ā from 54.6 in the previous month. This was above market expectations of 51.1.

Business is booming for Indian IT firms!

Indian IT firmsĀ have been witnessing bumper deals coming their way over the past few quarters, with some of the names closing theirĀ biggest ever deals last quarter. A deeper dive into this trend reveals that firms across the globe are activelyĀ rethinking their business models.

Why? Because the pandemic has made the importance of a digital society very clear. And for firms to survive through this change, they need to make their business conducive to the digital world. Hence, they are approaching Indian software companies to help them digitise their business.

Also Read:Ā Indian stocks gain despite dwindling healthcare system šŸ‘€

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