The Indian stock markets ended the week in the green with benchmark indices gaining well over 3%. Such optimism was fueled by a number of factors. First, India’s covid-19 cases have been on a downtrend for over a week now. This has made investors hopeful of a better-than-expected recovery in the economy. Second, firm global cues and strong global economic recovery also uplifted investor sentiment.
Lastly, inflation concerns in the US have eased which also erased concerns about rising interest rates in the US. This would mean that foreign investors will continue to invest in developing markets like India, in search of higher returns.
The Big Picture
Wholesale Price Inflation (WPI) in India stood at 10.49% in April 2021 when compared to the same period last year. This is the highest recorded WPI in 11 years and was well above market expectations of 9.05%.
Deposit growth, which measures the growth in commercial bank deposits, stood at 9.9% in the fortnight ended May 7th, 2021 when compared to the same period last year.
Loan growth, which measures the growth in commercial bank loans, stood at 6% in the fortnight ended May 7th, 2021 when compared to the same period last year.
Foreign Exchange Reserves in India increased to $590.03 billion on May 14th from $589.47 billion in the previous week.
The Electric Vehicle market’s next breakthrough?
India has the largest renewable energy expansion plan in the world. The government aims to make India a carbon-neutral country by 2050. Working in that direction, it was in 2013 that India launched the National Electric Mobility Mission Plan to promote the production and use of Electric Vehicles.
While the industry has made significant progress, it still has a long way to go. Consumers still face some key concerns while deciding to buy an electric vehicle. Most of these concerns are around the support infrastructure of electric vehicles. For example, the availability of charging stations is a big concern. India’s latest breakthrough on this front might prove to be a game-changer for the EV industry in India. Okay, so how does this affect you? Click below to find out! 👇
Quote of the week
And before we wrap up, here’s a quote around how an investor should think about time and patience.
“In investing – time is your friend, impulse is your enemy.”