Economic Observation
Consumption cutbacks rise recreation worst hits at 95%. Estimates of peak hit to consumption services which contribute 60% the country GDP was increased. The assumption on consumption cutbacks implies a monthly hit to the level of annual GDP of around 1.2% which implies pick hits to monthly GDP 14.7%with ample liquidity currently available in the banking systems Emotional and economic backlash against China is expected on FDI policy. Digital Economy with accelerated Online education Home entertaining and Fitness at Home. Most of the company suspended revenue guidance on uncertainty. There will be a deficit of confidence-building in especially the banking sector for the credit delivery and lifeline of the cash flow. Fancy cost including traditional working methods will be effected and bad and poor performance of the employees will be out but good talent will be insulated and protected. Reorientation will be required for survival. Our Indian economy is almost 3 Trillion us dollar but due to COVID19, there will be e gap between Macroeconomic effect and Microeconomic effects Rich and Poor will be categorized in the society. A company having High debts with a low margin will be risky there will be no CAGR. A company having High debt with High margins has to continue cautiously treated as Bad Cost and Good cost and requires benevolent organization ion behavior. Zero debt company will only survive with CAGR more than 10% All retail investors and even the FPI route and Big FI alls eyes theirs share price only and All PSU other than banking sector share prices will be bullish due to Gvt support by infusing equity capital for maintaining sustainable growths. Small and Medium-sized require to reinvest in their business otherwise will be facing a liquidity crisis. Before the COVID19 Real Estate sector on a huge inventory with a huge cost to carry. Our well-known company PAYTM losses 21%as E Pass fall. Virus impact on currency and metal. India most digitally extradious nation globally. SEBI now very crucial position how will be dissolved NBFC and Mutual funds to Tide over current difficult situations despite the regulator not having any power like RBI. Bank Slippages to rise as business losses revenue. Export houses that have sold their anticipated dollars revenue in the forwarded market are staring at a crisis as they risk losing Millions. But at every opportunity, we should inspire the people with whom we work to make decisions and take actions that promote peace and Unity
Counsel
4 年I had no clue that the link between the GDP and the NBFC and Mutual funds holdings was tied in the manner as you have described. This is an amazing article.