Crisil applauds India's speedy recovery; warns about pitfalls
Global rating agency CRISIL has praised India's speedy economic recovery in its latest report.
The report has credited RBI's timely monetary interventions for containing liquidity pressure. It stated that while easy global monetary policies have helped, the RBI’s accommodative stance has contained short-run pressure on the economy.
Despite the comforting words from CRISIL, it would be unwise to say that Indian economy is out of the woods. The economy is yet to witness sizable investment from the government as well as private companies. Lack of credit growth, stress on the fiscal revenue and slow pick up urban-centric growth continues to remain major concerns.
No end of misery for the Aviation industry:
Despite the revival in domestic activities, the aviation industry continues to reel under the Covid effect. As Europe and the US are witnessing a second wave of fresh cases, the international flights to and from India will continue to remain suspended till November 30.
However, international all-cargo operations will continue to operate. The Directorate General of Civil Aviation (DGCA) also clarified that flights under the air bubble arrangements will also continue to operate.
This development has added further uncertainty for the investors as a way ahead continues to remain unclear for the aviation industry.
HeroMoto Q2 performance: What story is it telling you?
HeroMoto's Q2 performance confirmed the trend of improving demand for Two-wheelers. The company delivered revenue growth of 24% YoY while sales volume grew by 7.3% YoY.
Hero's outperformance is helped by better supply management and large rural franchisee. The demand is expected to remain positive in the next quarter as well due to the festival season.
However, sustaining demand post-festival season will be a key trend that the market will keenly observe. If the trend sustains post-December, we take it as a solid cue that the Indian economy is consolidating its position and stays firm on the path of economic recovery.
