Last week the Indian stock markets ended the week higher tracking firm global cues and expectations that central banks around the globe would maintain a loose monetary policy. This means that central banks are expected to keep interest rates low so that the pace of economic recovery is on track.
This comes at the backdrop of high inflation figures in the US. Despite high inflation numbers, investors expect that authorities will continue to aggressively try to recover the economy from the doldrums and that money is still expected to flow into the stock markets.
Anyway, before moving into further updates about the markets, here’s your quote of the week…
Quote of the week
“Money is made through time in the market, not through timing the market.”
Markets Update
Nifty 50
|
15,799.35
|
0.82% ▲
|
|
Nifty 500
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13,563.85
|
1.27% ▲
|
|
Nifty Bank
|
35,047.40
|
0.69% ▼
|
|
The Big Picture
- Industrial production measures the output of businesses integrated into the industrial sector of the economy. India’s industrial production surged 134.4% in April 2021 when compared to the same period last year. This is the biggest growth seen in Industrial Production ever and beats market forecasts of 120%. However, this rise is mostly attributed to the low base effect since industrial production was artificially low last year due to the nationwide lockdowns.
- Manufacturing Production in India increased 197.1% in April of 2021 over the same month in the previous year. It is the biggest increase ever, following a record 66.6% drop in April 2020 due to the coronavirus pandemic.
- Foreign Exchange Reserves in India increased to an all-time high of $605 billion on June 4th from $598.17 billion in the previous week.
- Total passenger vehicle sales in India dropped 66.3% in May compared to the previous month, as many states were under lockdown amid the second wave of COVID-19 infections. Many manufacturers had to shut down their plants to divert oxygen from industrial use for medical purposes.
Ok, so?
Private equity investors eyeing different sectors
Private equity investments have surged this year as companies in healthcare, IT, consumer tech and financial services have been seeing keen interest from investors. This has wide-reaching consequences across the economy. Okay, so how does this affect you? Click below to find out! 👇
Inside smallcase
Hello from the Windmill Capital desk!
Here’s a message from our first managers on the smallcase platform, who’ve been curating innovative smallcases like All Weather Investing, Electric Mobility, Low-Risk Smart Beta, and so on, since 2016!
And that’s a wrap for this week. Until next time, take care and happy investing! 🙂
VP, Investment Products at Windmill Capital.