The covid-19 second wave has engulfed the country and put immense pressure on the already dwindling economy. Our healthcare systems have been inefficient in tackling the crisis and the frontline workers have been stretched beyond capacity. This has led to the imposition of restrictions across different states in the country which in-turn impacts businesses. Hence, the stock markets extended their losses for a 3rd straight week as benchmark indices ended the week in the red. Investor sentiment also took a hit because of a triple mutant variant of the coronavirus that seems to have been found in some states.
Alright, before moving into further updates about the market, here’s a quote of the week that exemplifies the potential of the stock market to help in long-term wealth creation.
Quote of the week
The stock market is a casino in the short run, and a wealth-creation device in the long run.
Deposit growth, which measures the growth in commercial bank deposits, stood at 10.9% in the fortnight ended Apr 9th, 2021 when compared to the same period last year.
Loan growth, which measures the growth in commercial bank loans, stood at 5.3% in the fortnight ended Apr 9th, 2021 when compared to the same period last year.
Foreign Exchange Reserves in India increased to $582.41 billion on April 16 from $581.21 billion in the previous week.
Boost to housing: A whole new realty
In its quarterly monetary policy meeting, the Reserve Bank of India decided to keep benchmark interest rates – namely, the repo and reverse repo rates, unchanged. Currently, interest rates are at an all-time low and this is something the RBI intends to maintain in order to tackle the crisis caused by the pandemic.
Having low interest rates incentivises borrowers to borrow and spend/invest money – which in-turn boosts economic growth. Housing, one of the worst hit industries, is expected to get a boost, as home loan rates are at an all-time low and many believe this to be the best time to buy a house. Okay, so how does all this affect you? Click below to find out!