According to reports, there has been a sharp decline in purchasing goods in India over the last one year. It is estimated that the reason for this is that it is not possible to buy goods when inflation increases. Producers are worried that things will not pick up on Diwali as well.

Hope in the villages

Many large manufacturers are willing to cut product prices to offset the fall in demand. This is done because more products will be sold if the prices are reduced in the rural markets. Maggi instant noodles maker Nestlé and biscuit maker Britannia Industries have cut prices of their products. It is hoped that the rural demand will increase with availability in more shops. Also read here Nestlé India recorded slowest growth in eight years. Growth in rural areas outpaced urban growth for the first time in five quarters in the January-March period as consumer majors including Dove soap maker Hindustan Unilever cut prices to win back customers, reports in August said. In the coming quarters, Dabur India and Emami expect more demand from rural areas. An improved monsoon and government intervention are expected to boost the market.

Withdrawing money than during covid

Foreign investors are now withdrawing money from the Indian stock market more than during the pandemic. FPIs have sold shares worth Rs 67,308 crore so far in the month of October.

While there is talk of foreign money moving from Indian equity markets to Chinese stocks, no one is clear about China. But foreign fund managers have invested more in Indian stocks. Many foreign fund managers openly admit that they are still underinvested in Chinese stocks. It is also clear from the interviews that foreign founding investors, including Jeffries, have a China inclination. While foreign investors are pulling money out of the Indian stock market, Indian domestic investors are buying stocks. That’s why the Indian stock market is falling, but it’s not heading for a major crash.