• हिन्दी
  • ગુજરાતી
  • বাংলা
  • తెలుగు
  • मराठी
  • ಕನ್ನಡ
  • money9
  • Insurance
  • Saving
  • Mutual Funds
  • Mirae Asset MF
  • Breaking Briefs
downloadDownload The App
Close
  • Home
  • Videos
  • Podcast
  • Banking
  • Bulletin
  • Gold
  • Healthcare
  • Real Estate
  • Tax
  • Travel
  • Survey 2023
  • Survey Report
  • Breaking Briefs
  • Insurance
  • Savings
  • Loan
  • Crypto
  • Investment
  • Mutual Funds
  • Real Estate
  • Tax
  • Exclusive
  • Home / Opinion

Let the bull run be just that

Policymakers must focus on real growth through infrastructure development, healthcare spending, and factory output to sustain the bull run.

  • Money9
  • Last Updated : June 10, 2021, 07:32 IST
  • Follow
  • Follow

The second wave of Covid-19 may have wrecked India, but not India’s capital market. The bulls have been on steroids, charging in from all directions.

Markets are touching new highs on a regular basis. Mutual Funds again saw record inflows, this time totalling Rs 9235 crore in May 2021. Foreign as well as domestic institutional investors continue to enter the fray, sustaining the positive trend. At $3 trillion, India’s market cap to GDP ratio of 98% is at a decadal high, well above the long-term average of 76%.

These are great numbers to celebrate when the economy’s core fundamentals are strong. Unfortunately, that was not the case yesterday.

Weeks of lockdowns and reduced economic activity have cost India dearly. RBI has cut down growth projection from 10.5% to 9.5% – not a bad figure when seen in isolation, but not great when seen against a low-base previous year.

Auto sales have dwindled. Fuel prices are burning a hole in the middle-class wallet. Low interest rates and inflation pegged at 5.1% are adding insult to the injury at a time when unemployment rates continue unabated in double digits, week after week.

Without jobs, there is no consumption. Without consumption, no growth.

If India’s GDP continues to remain flat, the apparent bull run will turn into a bubble that will eventually burst, eroding billions of dollars of investor wealth.

The market sentiment yesterday was positive as there were hopes of India overcoming the shackles of economic blues.

The bulls want to stay invested, even up their investments, to see that happen before they want to cash out. They are pinning their hopes on India’s revival. So is the nation.

Policymakers must focus on real growth through infrastructure development, healthcare spending, incentivising private sector job creation, and negotiating hard to become the world’s factory to boost the manufacturing sector’s output. India should peg its GDP to a value-target, not a Y-on-Y growth percent. The $5 trillion economy dream needs new wings.

Until then, retail investors with a low risk-threshold should watch the economy as closely as the stock markets. If macro indicators continue to look bleak, a little profit booking at current levels as was seen yesterday will not hurt. The downside of waiting too long, however, could be drastic.

Published: June 10, 2021, 07:21 IST

Download Money9 App for the latest updates on Personal Finance.

  • Covid-19
  • economic revival
  • Money9 Edit

Related

  • ‘ऑपरेशन सिंदूर’ में मारे गए 100 आतंकवादी, राजनाथ सिंह ने किया खुलासा
  • Building a portfolio with Debt Mutual Fund
  • 30 years of reforms: Looking back at a watershed moment
  • Regulatory changes required for making SPACs a successful regime
  • Term plan: Beware of these traps
  • Insurance Awareness Day: Are you protected from these risks?

Latest

  • 1. Know the correct way to get KYC done!
  • 2. Why health insurance claim gets rejected?
  • 3. Power to Respond!
  • 4. What is Asset Under Management?
  • 5. No Worries on Medical Expenses!
  • Trending Stories

  • पश्चिम एशिया में तनाव के कारण कच्चे तेल से जुड़ी कंपनियों के शेयरों में गिरावट
  • क्रिप्टो करेंसी से आय सीबीडीटी की जांच के घेरे में, लोगों को भेजे जा रहे ई-मेल
  • अमेरिकी डॉलर के मुकाबले रुपया 55 पैसे टूटकर 86.07 पर बंद
  • सोना 2,200 रुपये उछलकर फिर एक लाख के पार, चांदी भी चमकी
  • LIC ने एयर इंडिया विमान दुर्घटना पीड़ितों के लिए दावा निपटान प्रक्रिया में ढील दी
  • TV9 Sites

  • TV9 Hindi
  • TV9Telugu.com
  • TV9 Marathi
  • TV9 Gujarati
  • TV9 Kannada
  • TV9 Bangla
  • News9 Live
  • Trends9
  • Tv9tamilnews
  • Assamtv9
  • Malayalamtv9
  • Money9 Sites

  • Money9 Hindi
  • Money9 English
  • Money9 Marathi
  • Money9 Telugu
  • Money9 Gujarati
  • Money9 Kannada
  • Money9 Bangla
  • Money9live
  • Topics

  • Insurance
  • Savings
  • Loan
  • Stocks
  • Mutual Funds
  • Real Estate
  • Tax
  • Crypto
  • Exclusive
  • Follow us

  • FaceBook
  • Twitter
  • Youtube
  • Instagram
  • Linkedin
  • Download App

  • play_store
  • App_store
  • Contact Us
  • About Us
  • Advertise With Us
  • Privacy & Cookies Notice
  • Complaint Redressal
  • Copyright © 2025 Money9. All rights reserved.
  • share
  • Facebook
  • Twitter
  • Whatsapp
  • LinkedIn
  • Telegram
close