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Global and domestic cues lead to market sell-off

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The Indian stock markets ended the week in red as benchmark indices witnessed broad-based selling across multiple sectors. A number of global as well domestic factors have led to this. US Treasury Secretary Janey Yellen mentioned that the US economy still remains at risk and is vulnerable to external as well as internal shocks. Moreover, a proposal for a potential tax hike in the US has made investors nervous. At home, rising Covid-19 cases has taken a toll on the economy as possibilities of lockdowns have increased. Investors are nervous about the adverse effects of a second wave which might disrupt the growth of an already weak economy.

Anyway, before moving on to further market updates, let’s take a look at an interesting market trivia…

Matter of Fact

As for most of us, 2020 was not the best year – for life and business alike. However, something quite peculiar has happened, despite the adversities that 2020 presented in front of us…

2020 saw a surprisingly large number of companies go from private to public – via the IPO route. In fact, despite the whole year being was overshadowed by the pandemic, companies raised a record amount of money via the public equity markets. Over ₹1.77 lakh crores was raised by companies in 2020 alone. That figure stood at just about ₹82,000 crores in 2019, according to sources.

Despite the pandemic, companies raised a record sum of money via public equity markets in 2020. Over ₹1.77 lakh crores was raised by companies in 2020 alone. That figure stood at just about ₹82,000 crores in 2019. Click To Tweet

Markets Update

Nifty50

14,507.30

1.61% ▼

Sensex

49,008.50

1.70% ▼

Nifty500

12,148.90

1.34% ▼

Nifty Bank

33,318.20

2.47% ▼

The Big Picture

Deposit growth, which measures the change in commercial bank deposits stood at 12.1% in the fortnight ended March 12th, 2021 when compared to the same period last year.
Loan growth, which measures the change in commercial bank loans stood at 6.5% in the fortnight ended March 12th, 2021 when compared to the same period last year.
Foreign Exchange reserves stood at $582.30 billion in the previous week – a slight increase from the week before.

Ok, so?

Defence: The next step towards self-reliance

PM Narendra Modi pledged to make India a self-reliant nation and a manufacturing hub to the world – a much-needed alternative to the current hub – China. A slew of developments has taken place in that direction. One such development is happening in the defence sector. India has always imported most of its defence equipment from the likes of Russia, China, the US, etc.

However, in the past few years, India has made an effort to reduce its dependence on foreign arms and defence equipment. It has reduced imports and raised FDI limits to lure foreign firms to set up manufacturing capabilities in India. Okay, so why should you care? Click below to find out!

Our government, during the advent of-19, launched the mission of making India self-reliant.

A no. of developments have taken place in this direction.

One such development is the effort to manufacture defence equipment and reduce dependencies on foreign arms.

Ok, so? 👇🏻 pic.twitter.com/M7xBYrN8zD
— smallcase (@smallcaseHQ) March 26, 2021

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Working in that direction, we’re happy to announce a slew of new and improved features. There will be a live performance chart for every smallase that showcases the performance of the smallcase since its birth. Moreover, CAGR and Risk calculations will no more include backtested data and finally, we’re shifting away from classifying smallcases under different ‘Risk’ buckets to ‘Volatility’ buckets instead. To read and understand why, check out the blog.

Abhishek Jadon

VP, Investment Products at Windmill Capital.

India’s booming FMCG industry

Markets snap 2-week losing streak

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