If the economy isn’t looking good then why is the Sensex rallying? BizzStart Ep 8
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If the economy isn’t looking good then why is the Sensex rallying? BizzStart Ep 8

The BSE Sensex scaled a fresh high on Thursday,
and the NSE Nifty closed above that psychologically important 12,000 mark Much on the back of some ease in the tension
between Donald Trump and China and the booster shot back home Rs 25,000 crore…for a real estate sector
in drip. But Quick question? The Sensex is looking good but the economy
isn’t, what’s going on? Hello, I’m sunil suthar this is our special
Video on the economic slump, and the market’s behaviour Manufacturing is down…abysmally low, credit
is shrinking, banks are squeezed but the bourses are defying all logic. Yeah, the sentiments got a booster after Finance
Minister Sitharaman announced an Alternative Investment Fund to help out the real estate
sector. The 25,000 cr rupees fund is set to help complete
more than 1600 housing projects that were stalled. Sitharaman also said she won’t miss the bus
next time on reforms, which meant things might change for the better. And the government’s intervention is needed
now more than most. But isn’t it important to curb fiscal spending
in these times? I mean if you think about it, in 2012, the
government didn’t, and it still reduced the fiscal deficit by 1%. There were other policies put in place, too. Cutting repo rates, loan waivers, refinancing,
it took a lot of work on the FinMin’s part for the economy to become healthy. Even in 2002, a corporate tax cut was introduced. So does that mean, its gonna work this time
too? Well, data does show that for 387 companies,
the PAT growth, which is profit after tax growth, is 17%. But its going to take about two to three quarters
for the economy to normalise, so its hard to say. Because right now, this crunch that started
in the shadow banking industry is now affecting everything. Manufacturing is shrinking, our trade has
slumped, and now so has tourism. Delhi’s pollution is gravely affecting flights,
and driving away tourists. Which could not have happened at a worse possible
time. This downward spiral will need a lot of work. And something that boosts confidence. Which stimulates the stock market. While a 5% growth doesn’t look so bad when
you’re in this stale world economy, its pretty bad for a country like India. And experts believe that growth should rebound
to normal levels by the first and second quarter of the next fiscal year. We’ll have to wait and see what Sitharaman
announces next, for more news,

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