According to the report of Japanese broking firm Nomura, market activities in India have improved significantly after covid-19. After the second wave of Corona, the market situation in India is improving rapidly. The situation is now getting better than the pre-corona level. The Nomura India Business Resumption Index (NIBRI) reached 101.2 on August 15. It has crossed the 100 mark for the first time since the pandemic started. The index was at 99.6 points for the week ending August 8.
Rapid recovery after second wave
Nomura economists Sonal Verma and Arodeep Nandi said in the report that after the first wave of covid-19, it took 10 months for the Nomura India Business Resumption Index to cross the 100 mark.
But after the second wave, it has taken just less than three months to cross the 100 mark. This improvement reflects our positive outlook.
Nomura expects India’s gross domestic product (GDP) to contract by 4.3 per cent sequentially in the April-June quarter, but is expected to increase compared to a year ago.
The GDP figures for the second quarter of 2021 are due on August 31. Economists Sonal Verma and Arodeep Nandy said that the continuous rise in the index during July-August suggests that a strong sequential turnaround is likely in the third quarter.
Increase in Google Mobility Indicators
The Google mobility indicators continued to rise, with the workplace and retail indices up 1.7 percentage points and 3.4 percentage points, respectively, while the Apple driving index fell 0.8 percentage points.
Electricity demand increased by 5.7 percent week-on-week, while the labor participation rate declined from 41.5 percent to 40.4 percent. Meanwhile, retail inflation
It declined to 5.59 percent in July, from 6.26 percent in June, while the Index of Industrial Production (IIP) increased by 13.6 percent.
There are clear signs of improvement in automobile production, core sector output and power generation. Along with this, there has been a better improvement in areas like freight and merchandising exports.