Teji Mandi: A dose of positivity
Teji Mandi: A dose of positivity
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Market follows a familiar script as it recovers from the lows. Positive earnings so far from Nifty50 companies have surprised many. The Finance Minister also confirmed the emergence of greenshoots in the economy. While all this is happening, India’s long standing issue of population explosion seems to be taking care of itself.

Over the month or so, the market is utilizing all the dips as a buying opportunity. It followed the similar pattern even today where the market gained most of the lost ground in the last hour of trade.

Every aspect is seen falling in place for the market to continue its journey upwards. Promising results in early trials for a coronavirus vaccine and a positive start to the earnings season has bolstered optimism.

Britannia, HDFC Bank, ACC, Axis Bank, Wipro, Infosys and HCL Tech- They all have announced strong quarterly results. HUL's performance was also strong despite the high proportion of discretionary products in its portfolio. Private insurers show their business being impacted but they managed to maintain profitability.

Confirming the green shoots in the economy, Finance Minister, Nirmala Sitharaman assured all the help to boost the recovery. Speaking at the 2020 India Ideas Summit, the minister discussed the positive impact of Rs 20.97 lakh crore stimulus package on various sectors including on MSMEs.

She confirmed the revival in the rural economy post bumper kharif production. She also highlighted overall pick up in high-frequency indicators like electricity and fuel consumption, inter and intra-state movement of goods, PMI data, and retail financial transactions.

Deviating from the market, this report deserves a mention. It's heartening to see India succeeding in controlling its population explosion. India's total fertility rate (TFR) has dropped from an average of 6 births per woman in 1950 to 2.2 in 2018. It's a blessing for its women and freedom in a real sense.

It is even more important to highlight the role that education has played in bringing the TFR down. The fertility rate at 2.1 is much lower among the 'literate' group of women as compared to a TFR of 3.0 among the 'illiterate' group.

Plenty of work still needs to be done in rural India though where the total fertility rate (TFR) stands at 2.4; higher than the national average of 2.2. Lack of education and proper healthcare facilities could be a reason. Urban India's fertility rate, at 1.7 births per woman, is lower than the national average.

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Free Press Journal