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Few Companies Are Performing Well In Share Market But Inflation Of Kitchen Items Has Become Difficult For Middle Class

Summary

Economic affairs expert Dr. Nagendra Kumar Sharma told Amar Ujala that Sensex is considered a ‘game’ of only 30 big companies. If foreign investors invest money in the greed of bullishness, then the Sensex starts playing high, then due to some apprehension foreign investors pull money, there is a sudden sharp fall in it. The biggest loss in this is of small investors who invest money in the stock market in the greed of earning.

Two conflicting pictures are clearly visible in the country’s economy at this time. The Sensex has reached a record high of 60,400 points, while the Nifty has crossed the psychological level of 18 thousand. This is an indication that select large companies in the country are performing well. On the other hand, due to the inflation of potatoes, onions, tomatoes, petrol and domestic gas, it has become difficult to run the house of the middle class. The unemployment rate in the country remains at a high rate of 7.1 percent even at this time. Even after the festive season, the unemployment rate in cities is 7.9 percent, and even after the sowing season, the unemployment rate in rural areas is 6.7 percent. Experts say that the height of the Sensex does not present the complete picture of the economy.

Economic affairs expert Dr. Nagendra Kumar Sharma told Amar Ujala that Sensex is considered a ‘game’ of only 30 big companies. If foreign investors invest money in the greed of bullishness, then the Sensex starts playing high, then due to some apprehension foreign investors pull money, there is a sudden sharp fall in it. The biggest loss in this is of small investors who invest money in the stock market in the greed of earning, but lose their entire capital if they do not take the right steps at the right time. The country has seen scams like Harshad Mehta, so before any major untoward incident, the government should fix a regulator on the buying and selling of shares.

According to Dr. Sharma, the economy of our country runs on the strength of most medium, small and low level units. The government should strengthen this sector, which will improve the real picture of the economy, reduce unemployment and increase the demand for essential things in the market. He said that the Sensex does give information about the improvement of one part of the economy, but in a country with a population of 135 crores, the entire economy cannot be analyzed on the basis of the health of only 30-50 companies.

Improvement in the economy is a symbol of the world’s confidence

However, some experts believe that a clear indication of the recovery of the economy is being seen in the stock market of Sensex and Nifty. The biggest proof of the economy is that the core sector industries are booming. Shares of State Bank of India, Tata Steel, Bajaj Finserv, Tech Mahindra and Dr Reddy’s have risen sharply. The boom in the steel-cement sector also proves that there has been a spurt in construction work at the lower level, which along with it creates boom in 50 other sectors.

Similarly, the boom in the performance of Bajaj and State Bank of India proves that the middle class consumer is making heavy purchases of homes, electronics and vehicles, due to which the operations of these lending companies are increasing. After the Corona period, this can be considered a veritable sign of the betterment of the economy.

The effect of concrete steps of the central government

Economic affairs expert and Bharatiya Janata Party’s national spokesperson Krishna Gopal Agarwal told Amar Ujala that the Sensex reaching a new high is a proof that the central government is taking better steps towards improving the economy and the Indian economy of the world fraternity. I am growing in confidence.

He said, Sensex may not present the picture of the entire economy, but it is definitely an indicator of the direction of the overall economy. If other parameters of the economy are doing well, then only its positive shadow is visible on the Sensex. If other important parts of the economy do not perform well, then its negative impact is visible on the Sensex and the Sensex falls.

The participation of the top 50 companies of the country in the Sensex is the most important. These companies and their investors get the most benefit from the rise of the Sensex. But if the rest of the economy is not doing well, then these companies cannot increase their share price even if they want to.

When demand rises at the bottom of the economy, smaller companies tend to accelerate. The impact of the better performance of the lower level companies is reflected in the larger companies because in most cases the industries of the lower economy create demand for the bigger companies. Therefore, a higher rise in the Sensex should be seen as an improvement in the economy as a whole.

As for the losses caused by the Sensex falling when foreign investors pull back their money, foreign investors do so only when they anticipate a sharp downturn in the economy or a major change in government policies in the future. But since the present government is taking pro-industry steps and giving special boost to the construction sector, there is no danger of foreign investors running away from the market in the coming days.

Expansion

Two conflicting pictures are clearly visible in the country’s economy at this time. The Sensex has reached a record high of 60,400 points, while the Nifty has crossed the psychological level of 18 thousand. This is an indication that select large companies in the country are performing well. On the other hand, due to the inflation of potatoes, onions, tomatoes, petrol and domestic gas, it has become difficult to run the house of the middle class. The unemployment rate in the country remains at a high rate of 7.1 percent even at this time. Even after the festive season, the unemployment rate in cities is 7.9 percent, and even after the sowing season, the unemployment rate in rural areas is 6.7 percent. Experts say that the height of the Sensex does not present a complete picture of the economy.

Economic affairs expert Dr. Nagendra Kumar Sharma told Amar Ujala that Sensex is considered a ‘game’ of only 30 big companies. If foreign investors invest money in the greed of bullishness, then the Sensex starts playing high, then due to some apprehension foreign investors pull money, there is a sudden sharp fall in it. The biggest loss in this is of small investors who invest money in the stock market in the greed of earning, but lose their entire capital if they do not take the right steps at the right time. The country has seen scams like Harshad Mehta, so before any major untoward incident, the government should fix a regulator on the buying and selling of shares.

According to Dr. Sharma, the economy of our country runs on the strength of most medium, small and low level units. The government should strengthen this sector, which will improve the real picture of the economy, reduce unemployment and increase the demand for essential things in the market. He said that the Sensex does give information about the improvement of one part of the economy, but in a country with a population of 135 crores, the entire economy cannot be analyzed on the basis of the health of only 30-50 companies.

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