{"id":10885,"date":"2021-05-24T16:46:46","date_gmt":"2021-05-24T11:16:46","guid":{"rendered":"https:\/\/www.fintoo.in\/blog\/?p=10885"},"modified":"2021-05-24T21:25:26","modified_gmt":"2021-05-24T15:55:26","slug":"daily-market-analysis-24th-may-2021-economy","status":"publish","type":"post","link":"https:\/\/blog.fintoo.in\/blog\/daily-market-analysis-24th-may-2021-economy\/","title":{"rendered":"Daily Market Analysis \u2013 24th May 2021 (Economy)"},"content":{"rendered":"\n

RBI surplus to Centre likely to impact economy markets and banks<\/strong><\/h4>\n\n\n\n

RBI\u2019s decision to transfer \u20b9991 bn to the government, while higher than expected, is still within the realms of keeping the contingency risk buffer at 5.5% of the RBI\u2019s Balance Sheet. RBI has ensured that the additional liquidity that it\u2019s bringing into the system through the government\u2019s balance sheet is coming at a time when inflation is low. This is a huge positive for the Economy, as it gives levers for the government to front-end spending especially towards infrastructure growth, post addressing the spending on Covid. The additional amount would help the government offset the impact of lower tax collection due to on-going restrictions, and support the divestment program which slowed down due to Covid.<\/p>\n\n\n\n

How big has the fall in Investments been in FY21<\/strong><\/h4>\n\n\n\n

The poor figure of investments can be primarily attached to the lockdown imposed early in the pandemic to curb the spread of cases. New project announcements in India for the financial year 2020-21 to the lowest in at least 17 years. India saw new projects worth \u20b95.18 Lakh Crore, the lowest since FY05. CARE said that for a revival of investments to take pace, there would need to be a surge in demand as factories are still not running at full capacity. This year, too, a recovery in investments is unlikely as many states have imposed lockdowns as deadly second wave ravage the country.<\/p>\n\n\n\n

Also read: 7 Questions That Will Tell You If You Are Financially Ready to Make Investments – Fintoo Blog<\/a><\/p>\n\n\n\n

Japan Exports Surge as Global Trades show signs of rebounds<\/strong><\/h4>\n\n\n\n

Japanese exports jumped again, climbing in April by more than a third from last year\u2019s levels. Surging car and auto parts shipments helped power a 38% rise in Japan\u2019s exports from a year earlier. Although the data give an inflated view of the strength of exports because they are based on a comparison with 2020\u2019s low figures, the report still shows trade bouncing back. Shipments climbed almost 8% compared with 2019.<\/p>\n\n\n\n

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