Uncertain Outlook: Markets in Samvat 2079

Samvat 2079 started with considerable uncertainty. The Nifty has eased by a nominal 2 percent since last Diwali. The rupee has fallen nearly 9 percent against the dollar and has risen against the pound, euro and yen. On the positive side, most companies are now declaring revenues that exceed their respective 2019-20 pre-Covid levels, in addition to higher profits supported by cost-cutting measures taken during the pandemic. Higher business sales gel with strong traffic movements on railways and ports, healthy tax collection on goods and services and record power consumption. All this indicates that the domestic economy is pulling out of the trough caused by the lockdowns of 2020. There has also been a lot of winding down and balance sheets are now stronger.

Leave a Comment