How did Indian economy kept forward pace despite global turmoil?


Posted by: Invos Research
Published on: January 28, 2023
How did Indian economy kept forward pace despite global turmoil?

The Indian stock market, like many others around the world, was heavily impacted by the COVID-19 pandemic. However, despite initial turbulence, the market has managed to sustain and even recover in the face of the ongoing crisis.

When the pandemic first hit, the Indian stock market saw a sharp decline, with the benchmark S&P BSE Sensex falling by more than 25% in just a few weeks. This was in line with the global trend, as stock markets around the world tumbled in response to the uncertainty and economic disruption caused by the pandemic.
However, the Indian market was able to recover relatively quickly, with the Sensex rebounding by more than 20% in just a few months. This was thanks to a combination of factors, including government stimulus measures, low interest rates, and a rebound in global markets.

One of the key drivers of the Indian stock market's recovery was the government's efforts to support the economy during the pandemic. This included a range of measures, such as monetary stimulus, tax breaks, and liquidity support for businesses. These measures helped to stabilize the economy and reduce the impact of the pandemic on businesses and households.
Another key factor was the Reserve Bank of India's monetary policy, which helped to keep interest rates low and support economic growth. This helped to boost market sentiment and attract investors back to the market.In addition, the Indian stock market also benefited from a rebound in global markets, as investors began to see signs of economic recovery in the US and other major economies. This helped to boost investor confidence and attract capital back to the Indian market.

However, the market's resilience during the crisis is a positive sign for investors and the economy as a whole. In conclusion, the Indian stock market was hit hard by the COVID-19 pandemic, but it has sustained and even recovered in the face of the ongoing crisis. The Indian government's efforts to support the economy, Reserve Bank of India's monetary policy, and rebound in global markets have been the key drivers of the recovery. Despite the uncertainty, the market's resilience during the crisis is a positive sign for investors and the economy as a whole.