₹1 lakh in December 2000 would have been ₹21 lakh today. From the latest intra high of 17,754.05, dated September 12, it went down by 7.25% on October 26, and on November 3, Nifty 50 closed at 17,000.95, which is 4.25% lower. A short-term break in the long-term growing market.
At the onset of the 21st century, the big picture for India was as a rising emerging market as the domestic economy had opened for world business. Initially, the focus was on infrastructure development, particularly in the areas of roads, power and realty, seen as basis fundamental to the new economy. However, it was often characterized as an elephant economy, substantial and steady, driven mainly by domestic demand, and not swiftly adapting to global opportunities.
This placid perception has since shifted in the present decade, with the economy now recognized as a burgeoning force poised to become a global supply hub in the future. The multiplier effect is seen in varied sectors like Digital, Renewables, Electronics, Technology, Pharma to Chemical, while efficient working of government expenditure is also uplifting rural and domestic demand. The Indian economy & fiscal situation are as strong as they have ever been.
Projections indicate a stable 6.5% YoY GDP growth from FY24 to FY26, alongside a 5.25% fiscal deficit, even amid global economic deceleration. H1FY24 corporate earnings growth has been bumper, with PAT growth of top 100 large cap estimates at 35% YoY. While no intrinsic structural issues have been identified within India, global circumstances have instigated fluctuations in the stock market, leading to currency volatility.
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