Stocks soars as India on ‘Mission Begin Again’ mode
May 31, 2020 | 12485 Views
After four phases of lockdown, India is ready to restart from the month of June. While ‘Lockdown 5’ has been put in place, it comes with numerous relaxations. ‘Lockdown 5’, which starts from 1 June 2020, has permitted all shops to open, people (other than young children, the aged and the frail) to move out, inter-state and intra-state travel is permitted and trains have been restarted. Stock marketsoared last week as optimism over the reopening of our economy continues to fuel stocks.
After two months of lockdown and being compelled to live frugally, there is tremendous pent up demand that needs to be met. Households need home appliances, clothing, vehicles, footwear and so on. Companies are gearing up to meet this pent-up demand. This, in turn, will reflect on stock valuations with the expectation that the corporate results from the next quarter onwards are expected to improve.
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