Durga Puja: Snapshot of Economy this festive season!

Durga Puja is the biggest festival of the year which is celebrated all over India, in different forms.

In North India, it is celebrated as Navratri whereas in Eastern India it is celebrated as Durga Puja, with theme-based pandals in almost every lane of the city of Maa Durga.

The most common thing about this festival is the essence of happiness everywhere.

While we are all in the mood to celebrate this joyous festival of Durga Puja with full excitement, the Indian Economy doesn’t seem that happy neither does the stock market.

So without taking much time, let us give you a quick give you a snapshot of the Economy this festive season!

You must have heard in news channels and read in newspapers about the economic slowdown of our country over the past few months.

The GDP growth rate of the country has reduced to 5 %, which is the slowest growth rate over the years.

Here are some reasons for the economic slowdown:

1. Real Estate

The real estate is one of the important sectors to analyse the state of the Indian economy.

The real estate sector is connected to over 250 sectors including bricks, cement, paint etc which gets affected by the gloom or boom in this sector.

According to the Reports on FMCG sector say that there has been a decrease in the Housing Price Index to 105 index points.

2. Auto Sector Crises

The automobile sector is facing its worst crises in the last 20 years.

According to Society of Indian Automobile Manufacturers (SIAM) around 300 auto dealerships have shut down their businesses.

Also, the sales of two-wheelers, cars, tractors have also declined in recent times.

3. Bank’s lending to MSME

The Bank lending to Micro, Small, and Medium enterprises (MSME) have declined from 0.7% last year to 0.6% in the June quarter.

Also, in the labor force survey released by the Government shows that the unemployment rate has made a 3-year record high of 6%.

Also the RBI consumer confidence survey shows a decline in consumer confidence in July because of the overall economic slowdown.

4. The slow pace of the FMCG sector

Also, the Fast Moving Consumer Goods (FMCG) sector have shown a decrease in the volume growth in the last quarter.

According to the reports, the Demand for FMCG in the rural sector was growing at a rate of 1.5 times as compared to the urban sector.

But now the rural demand has down or at the same level of urban growth.

The volume growth of Hindustan Lever has gone down 5.5% level compared to the volume growth of 12% last year which can be seen in the annual report of HUL

Due to all these domestic as well as the global crises in the different sectors, the stock market is also getting affected.

Amidst all the crises in different sectors and volatility in the stock market, it’s better to take out time to analyse the market.

With the India VIX, an index that measures investors’ fear rising to 4.1%we can see that this month has historically been the most volatile month.

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Enjoy Pandal Hopping this Durga Puja but also take some time out to improve your trading strategies and gaining knowledge on different areas of the stock market.

Wishing you all a Happy Durga Puja!

Happy Learning!