EFFECT OF COVID 19 ON ECONOMY

Covid 19 has not only affected our health but has also affected the financial health of the investors.

The second phase of covid is a gain bringing the market down. Investors are afraid to invest in the market as they are not sure about the return from the market.

Due to this Sensex and Nifty are facing a downfall.

" On 10th March 2021 Sensex was 51280 which have been lowered down to 49217 on 18 March 2021"

This downfall is making a clear picture again and the market tends to frighten in near future.

The truth is not hidden that covid have not only affected share market but all the sectors of the economy are been affected.

Semi-conductor are facing a problem as there is a 5% price increase in the product. Due to shortage of supply in semi-conductors are expected to face a price increment of 4-6% in 2021.

Computer devices and medical devices will have a 12% price increment which will further make these products expensive in the market.

As every point have two sides the economy also has two side the negative effect have been highlighted now let\"s talk about the positive side.

There are various industries and sector which are having a scope in near future and due to seasonal demand they are getting the benefit in the sector.

The demand for life insurance has increased after the effect of covid-19 People now understand the need for life insurance and health insurance. Many insurance companies have seen this as an opportunity and now started to provide covid insurance to people.

SBI life is expected to gain a huge benefit from this opportunity.

Banking industry is now opening doors for investor and is providing Home loans at a minimum interest rate. To attract more and more investment banks are taking this decision.

For the first time 20 banks and NBFC\"s  are offering Home Loan at less than 7% interest rate.

Currently, Kotak Mahindra Bank is offering Home Loan at 6.65 % which is least among the banks. The basic reason for this is that March is the last month for the financial year and banks want to generate maximum lead at this time.

In the near coming future the rates are expected to rise so bank want to build customer base at lower rates.

Banks have huge amount of cash , they want to increase their loan portfolio.

Though economy was at downfall but now it have started to gain arise. Second phase of covid is affecting share market but investor have seen this as an opportunity and they are still buying the shares which will bring profit to them in the near future.

THANK YOU FOR READING TILL END .





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