Description:
The Indian Stock Market’s bull run extended with all sectors taking a plunge in the holy stream of FII flow. Greenshoots are appearing even on the fundamental side with the rural economy throwing a few signs of life. The sentiments turned a little sour in the IT sector though as the US implemented fresh visa restrictions for the rest of the year.
The Indian market continues to have a dream run. Both the headline indices managed to conquer the major resistance levels without much of a fuss.
Amid the rising cases, Indian companies are making a beeline to claim the discovery of a new miracle drug for COVID 19. Let's make it clear though that it's not the possible cure of the virus that is fueling the market. It is the excess global liquidity that is finding its way to our market, fueled by lower interest rates.
Fundamentals also finally seem to be turning the tide with indicators throwing a few positive signs. After the robust tractor sales in May, The unemployment in Rural India has now seen a sharp drop. The rate is dropped to 7.26% till 21 June against 10.96% in the preceding week.
In contrast, urban India continues to see a persistently higher rate of unemployment at 11.19%.
Off-shore dreams curtailed:
Today brought disappointment for IT sector employees. With the US government temporarily freezing H-1B visas, the hiring process could fall in jeopardy.
The visa restrictions could force IT companies to rely on hiring local talents at a higher cost in the US, hampering the opportunities of the Indian job aspirants.
Key Takeaways:
The Indian market continues to outperform global markets as fundamental indicators are improving. Beginning of the unlocking, good progress of the monsoon have aided a pick up in rural employment. With this, rural unemployment has fallen to its three months low and even below the pre-lockdown levels.
The IT industry would have to rely on hiring more from the US market, cutting down on India hiring, in the wake of fresh visa restrictions. It could impact more than 2 lakh Indian job aspirants , this year. However, the outflow of new US visa holders from India is already down this year due to the COVID-19 outbreak. It could cushion the impact a little.
Read more research at https://tejimandi.com/research
