FINANCIAL FLASHBACK OF THE PANDEMIC

Nikita Vete

It’s been a year of surviving our ways through the novel coronavirus now. It was a fascinating sight to see the entire human race coming together and fighting against it, maybe that’s why it is called “novel”! The year 2020 will continue to remain like the fresh wound in the memory lanes of many.

Undoubtedly, it has changed our perspectives towards the little things of our lives, including finance. Something that started as a health crisis very soon also became a financial crisis. And this led to the change in our approach towards the financial matters. Let me put this way, do you see a change in your attitude towards the investment decisions, pre and post Covid?

With close of the financial year 2021-2022, it would be interesting to see some of the notable financial events: –

1. The GDP recorded the steepest fall in more than 40 years in June quarter (Q1 2020-21) due to lockdown
2. Both BSE and NSE indexes had shown extreme movements exciting the sentiments of the investors.
3. IPOs getting oversubscribed – with the increase of the retail players, the market has seen skyrocketing demand.
4. Eye Candy moment when Reliance sold 10% stake to Facebook for Rs 43574 crores. Apparently, this records as the largest FDI deal in the tech sector
5. While few banks like YES Bank and Lakshmi Vilas Bank had a mountain of bad debts to manage. Another reputed bank, HDFC had to deal with the retirement of Mr. Aditya Puri.
6. RBI introduces facilities to improve transactions like making RTGS around the clock and Positive Pay – to make cheque payments safe and fraud free. Allowed moratorium on the payment of installment was a relief to many.
7. Government Stimulus- The Finance Ministry announced a Rs 20 lakh crore economic stimulus package focusing on boosting manufacturing, strengthening supply chains among things
8. Hike in the price- Among some things that could have been managed better by the government was a hike in excise on petrol and diesel and lack of an urban support scheme as fiscal support measures announced were ‘rural’ in nature.
9. Industries that saw a major hit – Aviation, automotive, Media & entertainment and Hospitality
10. Industries with Major wins- Health & Pharma, Technology and Telecom

Well, if I had to give a takeaway for a retail investor, I would put it this way. Consider both health and life insurance as a major component of your investment portfolio. It would be a total waste if you don’t have sufficient cover and have to give away your compounding benefit. Things become simple when you treat it as a wealth protection tool. Mind your sentiments when in the market don’t make emotional decisions and stay longer. Continue with disciplined investments having an appropriate asset allocation. Lastly, happy investing in the new normal!

Nikita Vete is the Executive Assistant at Vete Associates Investment and Services Pvt. Ltd.

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