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Sensex crosses 56,000 for the first time!

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The Indian stock markets had a bumper week as benchmark indices witnessed buying interest to end the week in green. This has been the most unprecedented bull run in the history of the Indian capital markets as Sensex breached the 56,000-mark for the first time and Nifty inched closer to the 17k-mark.

Loose monetary policy, low-interest rates, and seemingly under-control inflation levels have contributed to this bull run as global liquidity and hopes for a strong recovery remain at all-time highs. Moreover, particular buying interest in sectors like IT, Pharma, Financial Services, etc has resulted in such run-up in valuations.

Quote of the week

The best time to invest was 20 years ago. The second best – is now.

The best time to invest was 20 years ago. The second best – is now. Click To Tweet

Markets Update

Nifty 50

16,705.20

1.55% ▲

Sensex

56,124.72

1.44% ▲

Nifty 500

14,192.50

1.78% ▲

Bank Nifty

35,627.80

1.70% ▲

The Big Picture

Deposit growth, which measures the growth in commercial bank deposits, stood at 10.6% in the fortnight ended August 13th, 2021 when compared to the same period last year.
Loan growth, which measures the growth in commercial bank loans, stood at 6.50% in the fortnight ended August 13th, 2021 when compared to the same period last year.
Foreign Exchange Reserves in India stood at $616.89 billion on Aug 20th from $619.37 billion in the previous week.

Investing Insights

Ride with the logistics revolution of India

The coming of the NDA government in India in 2014 marked a key event in India’s economic policy history as, for the first time, the country formalised its aim of becoming a manufacturing hub for the world by launching the famous ‘Make in India’ campaign. This also brought the logistics industry and its sheer importance to light – as a manufacturing giant would need to have a seamless logistics ecosystem for the smooth transport of goods and other products.

Another reason why the logistics industry is on the cusp of a revolution is because of e-commerce. For the first time ever, the power of the internet and the concept of e-commerce made it possible for Tier-II and Tier-III cities of India to access products that were otherwise unavailable. This same trend is now sweeping over rural India. Without an effective and efficient logistics infrastructure, the e-commerce companies, and hence retail businesses, will not be able to grow. To learn more and understand how you can efficiently invest in the logistics sector, click here.

Inside smallcase

Understanding CAGR

CAGR or Compounded Annual Growth Rate is the average rate of return an investment has generated every year – over a given period of time. CAGR is one of the, if not the most important metrics while judging an investment’s returns.

We take a stab at helping you understand CAGR and its nuances so that you could take more informed as well as better decisions regarding your investment. It’s wise to however note that past CAGR is not necessarily an indication of the future potential of an investment. Read more about CAGR, here.

And that’s a wrap for this week. Take care, and happy investing! 🙂

Abhishek Jadon

VP, Investment Products at Windmill Capital.

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