Economic Recovery

Economic Recovery

Market economies experience ups and downs for several reasons.

 Economies can be impacted by all kinds of factors, including revolutions, financial crises, and global influences. Sometimes these shifts in markets can take on a pattern that can be thought of as a kind of wave or cycle, with distinct stages of an expansion or boom, a peak leading to some economic crisis, a recession, and a subsequent recovery.

🎯It is the process of reallocating resources and workers from failed businesses and investments to new jobs and uses after a recession. It follows after the recession and leads into a new expansionary business cycle phase.

🎯During a recovery, the economy undergoes a process of economic adaptation and adjustment to new conditions, including the factors that triggered the recession in the first place and the new policies and rules rolled out by governments and central banks in response to the recession.

*Indicators of Economic Recovery*

1. GDP is in consistent growth. 

2. Consumer sentiment and spending.

3. Manufacturing purchase managers index.

4. Unemployment and wage growth.

*Top 5 Stocks:*

▫️ Reliance Industries Ltd: 8.68%

▫️ HDFC Bank Ltd: 7.51%

▫️Infosys Ltd: 6.54%

▫️ICICI Bank Ltd: 6.5%

▫️Tata Consultancy Services Ltd :  4.44%

*Top 3 Underweight Sectors :*

▫️Financial services : _32.26% Vs. 36.2%_

▫️Energy : _13.78% Vs. 16.06%_

▫️IT : _12.32% Vs. 14.48%_

 

*Top 3 Overweight Sectors*:

▫️ Cement and Cement Products : 

      _4.11% Vs. 2.12%_

▫️ Construction : _4.02% Vs 2.7%_

▫️ Pharma : _3.66% Vs. 3.11%_