President Joe Biden Infrastructure Plan Positive for Share Market – Infrastructure Plan 2021: Know the impact of the biggest package of the century on the stock market.
US President Joe Biden has taken a major step to revive the economy. Biden announced a $ 2 trillion infrastructure package to improve infrastructure. This infrastructure plan is being touted as the biggest investment proposal of the current century.
This will also affect the stock market, as the domestic stock market is affected by the global markets. A lot of questions are arising in the minds of investors about this as well.
Package has a positive impact on the market
The package had a positive impact on the Indian stock market. The market gained momentum on April 1, the first trading day of the financial year. Sensex again touched 50 thousand levels. Except for FMCG, all sectors closed on the green mark. Not only in India, but the American package had a positive impact on the stock markets around the world, so the global markets gained momentum on Thursday. Asian and European markets, including Singapore, Japan, China, Britain, France, closed in the green mark.
Stock market may increase further
Infrastructure package is expected to increase the liquidity of the world’s largest economy in a big way and whenever the economic activity in a developed country increases rapidly, the foreign institutional investors (FIIs) there expect more profit. Come to emerging developing markets. Therefore, it can be expected that foreign investors will invest money in the domestic market, which can further increase the Indian stock market.
The market will also be affected by these factors
Although very knowledgeable, even after the recent correction, they are assuming high value in the market. Soon the companies will also release the last quarter results of the last financial year. Apart from this, investors will also have a keen eye on Corona’s affairs and bond yields. The market will also be affected by these factors.
In the last two months of 2020, FIIs invested one lakh 13 thousand crore rupees in the market. Sensex and Nifty had gained a lot from this investment. Foreign investors’ investment in equity in January and February 2021 was Rs 19473 and Rs 25787 crore respectively. The Sensex reached the 52,000 level for the first time on February 15 after large investment. At the same time, in March the foreign investment came down to Rs 10952 crore, then there was a decline in the market.