Big news for today – Indian gold imports plunge to 3 decades low, Indian GDP 2020 and more
A lot of countries in the world have already eased the lockdown or looking forward to easing the lockdown. This had lead to the crude prices move up today by roughly 5% in the international market as they anticipate an increase in the demand for crude.
The gold craze for Indians has come to a 3 decade low as the gold import in April 2020 fell down by 99.9% on a YoY basis.
India’s gold imports plunged 99.9% year-on-year in April to their lowest in nearly three decades as air travel was banned and jewelry shops were closed amid a nationwide lockdown to curb the spread of coronavirus, a government source said. (source – moneycontrol)
The world’s second-biggest consumer of the precious metal imported around 50 kilograms of gold in April, down from 110.18 tonnes a year ago. In April the import of Gold is generally high due to the auspicious day of Akshay Tritiya.
ICRA expects GDP to contract by 20% in June quarter and fall by 2% in FY 2021
The current lockdown has closed almost everything in the nation. This had lead to a reduction in government GST collection which might hamper the current account deficit. Due to less consumption, ICRA expects the GDP to contract as much as 20% in the current quarter.
The government of India has started to slowly ease down the lockdown. They have even opened wine shops in redCOVID zones to boost up their taxable income.
Retail investors in India show increased interest in equities during the lockdown
In March and April this year, around 1.2 million new investors opened DEMAT accounts with the Central Depository Services (CDSL) despite the ongoing nationwide lockdown, as per a report by The Economic Times.
Earlier in April CEO of Zerodha had shared that there is a rise in demand to open new DEMAT accounts. Looks like this is true across the industry. The ET report also states that the volumes also increased by 53% in the month of April.
The fall in stock prices has led to an increase in participation from retail investors while institutional investors, FII’s are shying away from investing in equities.
A report by The Hindu Business Line has earlier stated that 75% of the DEMAT accounts in India are inactive and that there are over 4 crores DEMAT accounts in India.