https://sputnikglobe.com/20221024/market-bullish-during-diwali-festivities-while-average-indians-feel-inflation-pinch-1102441206.html
Market Bullish During Diwali Festivities, While Average Indians Feel Inflation Pinch
Market Bullish During Diwali Festivities, While Average Indians Feel Inflation Pinch
Sputnik International
Diwali, one of the most prominent festivals in India, is celebrated to mark the victory of good over evil. The day celebrates the return of Lord Rama to his... 24.10.2022, Sputnik International
2022-10-24T06:09+0000
2022-10-24T06:09+0000
2022-10-24T06:09+0000
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Two years after the COVID-19 pandemic, India is celebrating Diwali with full vehemence.The festival’s preparations start days before the actual day of celebrations, as people clean their houses, get them whitewashed and decorate them. Other traditions involve bringing new things into the home, such as purchasing new clothes or buying gold.Almost all the buildings, including skyscrapers, shops, and small houses, are decorated with shimmering lights in different parts of the country: people worship Lakshmi, the Goddess of wealth, fortune, power, beauty, fertility and prosperity, who is believed to bless the houses that are clean and properly illuminated.This enthusiasm for decorations or illumination was largely missing during the COVID-19 lockdowns. But with the epidemic under control, the general mood looks overwhelming once again.This autumn, the markets are bullish about sales, and this trend is widely expected to continue in times to come. Inflation, however, may still be a spoilsport.Sputnik spoke with a few stakeholders in Delhi in a bid to gauge consumer sentiment and the festivities’ impact on inflation.Market Optimistic After Sales Uptick Amid FestivalsThis year’s period of Hindu festivals started from the last week of September and will last until early November.According to media reports quoting industry estimates, online and offline sales during this period are estimated to cross $27 billion, which is 25 percent more than last year and almost double the amount in the same pre-COVID period in 2019.According to the Confederation of All India Traders (CAIT), offline sales are likely to almost double to nearly $15.2 billion compared to $8.5 billion in 2019. Meanwhile, market consultancy firm Redseer has estimated that online platforms like Amazon will register sales of around $11.8 billion.Consumers are not only buying goods or jewelry, but also putting their money in real estate, as they see it as a lucrative investment in times to come.Terming the festive days as good for the real estate sector, Rakesh Yadav of Antriksh India Group told Sputnik that property sales have been very good so far during the festive season.He said, however, that while real estate prices have increased over the past few months, they have done so at a slower rate than average inflation.Rishi Singh, managing director of real estate consultancy firm Indumaa Realtech India, echoed his views, as he feels that consumer sentiment has improved because corporate players are now entering the real estate sector, instilling user trust.However, he feels that sales have increased in the high-end segment but not in affordable housing.Meanwhile, the fashion industry - which includes jewelry as well as apparel - is also geared up to embrace the festive fervor.Talking about the uptick in sales, Shivam Saini, owner of Anil Kumar and Sons Jewelers, told Sputnik that, “Gold or silver coins and idols of Lord Ganesha and Goddess Lakshmi are the most salable products during Diwali. Sales usually go up on Dhanteras as it is considered to be very auspicious to buy gold or silver products.”Rajiv Khatri, owner of Khatri Jewellers, contradicted Saini’s view on inflation, saying that it is not that buying capacity has reduced but rather people have resorted to cautious buying.“After two years of pandemic fatigue, Indian consumers are upbeat during the festivals now. Lowered gold prices have also boosted the sales during the festive season. Apart from buying, people have started investing in gold increasingly. This trend seems to continue after Diwali also and the market will remain bullish,” Khatri said.Meanwhile, small shopkeepers are excited about the festive season as the market is being flooded by customers. These consumers, however, still feel the brunt of inflation.Garment shop owner Sagar Mishra told Sputnik that his locality is expecting a promising festive season as the footfall has increased, but that it is difficult to estimate sales because people’s buying patterns have changed.“Definitely people are coming out to buy products but they have clearly made a choice about what they exactly need. When it comes to buying clothes, they are not ready to put in a lot of money. They are looking for something which could be cheap. Instead of buying expensive clothes, people are looking to buy gold products or something which has longevity,” he said.On the other hand, Pravesh Trivedi, owner of Harry Collection, feels that despite increased footfall the shopkeepers selling clothes will not yield good profit during the festivals due to inflation.Catch-22 for Common FolkAlthough Indians are all decked up to celebrate the festival, the common citizen is suffering the pinch of inflation. Tradition and inflation have put them in a catch-22 situation, as on one hand they feel they have to follow the tradition, while on the other, they will have to compromise with their budget.Samanvay Singh, who recently got married, told Sputnik that, “This will be my first Diwali after marriage and we will have to visit a lot of people including relatives and close friends. Since, it is a tradition that we will have to give some gift to them we are a bit worried because the list is quite long. With everything so expensive, I am still trying to figure out a budget which won’t have much impact on my pocket.”On the other hand, Tarun Sachan, who works in an IT company, said that after two years of pandemic this Diwali also seems to be quite dull for a middle class family.He even said that this time Diwali is during the month end which will make the situation worse for people like him.
https://sputnikglobe.com/20221020/politicians-clash-over-firecracker-ban-in-delhi-shopkeepers-say-they-are-inseparable-from-diwali-1102439470.html
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Market Bullish During Diwali Festivities, While Average Indians Feel Inflation Pinch
Diwali, one of the most prominent festivals in India, is celebrated to mark the victory of good over evil. The day celebrates the return of Lord Rama to his Ayodhya kingdom after killing the demon King Ravana, as per Hindu scripture Ramayana.
Two years after the COVID-19 pandemic, India is celebrating Diwali with full vehemence.
The festival’s preparations start days before the actual day of celebrations, as people clean their houses, get them whitewashed and decorate them. Other traditions involve bringing new things into the home, such as purchasing new clothes or buying gold.
Almost all the buildings, including skyscrapers, shops, and small houses, are decorated with shimmering lights in different parts of the country: people worship Lakshmi, the Goddess of wealth, fortune, power, beauty, fertility and prosperity, who is believed to bless the houses that are clean and properly illuminated.
This enthusiasm for decorations or illumination was largely missing during the COVID-19 lockdowns. But with the epidemic under control, the general mood looks overwhelming once again.
This autumn, the markets are bullish about sales, and this trend is widely expected to continue in times to come. Inflation, however, may still be a spoilsport.
Sputnik spoke with a few stakeholders in Delhi in a bid to gauge consumer sentiment and the festivities’ impact on inflation.
Market Optimistic After Sales Uptick Amid Festivals
This year’s period of Hindu festivals started from the last week of September and will last until early November.
According to media reports quoting industry estimates, online and offline sales during this period are estimated to cross $27 billion, which is 25 percent more than last year and almost double the amount in the same pre-COVID period in 2019.
According to the Confederation of All India Traders (CAIT), offline sales are likely to almost double to nearly $15.2 billion compared to $8.5 billion in 2019. Meanwhile, market consultancy firm Redseer has estimated that online platforms like Amazon will register sales of around $11.8 billion.
Consumers are not only buying goods or jewelry, but also putting their money in real estate, as they see it as a lucrative investment in times to come.
Terming the festive days as good for the real estate sector, Rakesh Yadav of Antriksh India Group told Sputnik that property sales have been very good so far during the festive season.
“This is the best time for real estate developers to click good deals as the sentiment of the consumer to own a home has increased immensely post pandemic. This sentiment is undeterred by the increase in the home loan interest rate,” Yadav explained.
20 October 2022, 07:55 GMT
He said, however, that while real estate prices have increased over the past few months, they have done so at a slower rate than average inflation.
Rishi Singh, managing director of real estate consultancy firm Indumaa Realtech India, echoed his views, as he feels that consumer sentiment has improved because corporate players are now entering the real estate sector, instilling user trust.
However, he feels that sales have increased in the high-end segment but not in affordable housing.
Unhappy with the lackluster performance in affordable housing, Singh explained that, “The upward trend in [the] real estate sector is likely to continue after the festive season also as the customer’s trust has been reinstated, but a lot of people considering to buy affordable homes will be ousted from the market.”
Meanwhile, the fashion industry - which includes jewelry as well as apparel - is also geared up to embrace the festive fervor.
Talking about the uptick in sales, Shivam Saini, owner of Anil Kumar and Sons Jewelers, told Sputnik that, “Gold or silver coins and idols of Lord Ganesha and Goddess Lakshmi are the most salable products during Diwali. Sales usually go up on Dhanteras as it is considered to be very auspicious to buy gold or silver products.”
Saini, however, feels that the buying capacity of people has decreased due to inflation, despite gold prices going down. “Compared to previous years, this time, only a few people are making investments by buying gold at a drop price,” he stated.
Rajiv Khatri, owner of Khatri Jewellers, contradicted Saini’s view on inflation, saying that it is not that buying capacity has reduced but rather people have resorted to cautious buying.
“After two years of pandemic fatigue, Indian consumers are upbeat during the festivals now. Lowered gold prices have also boosted the sales during the festive season. Apart from buying, people have started investing in gold increasingly. This trend seems to continue after Diwali also and the market will remain bullish,” Khatri said.
Meanwhile, small shopkeepers are excited about the festive season as the market is being flooded by customers. These consumers, however, still feel the brunt of inflation.
Garment shop owner Sagar Mishra told Sputnik that his locality is expecting a promising festive season as the footfall has increased, but that it is difficult to estimate sales because people’s buying patterns have changed.
“Definitely people are coming out to buy products but they have clearly made a choice about what they exactly need. When it comes to buying clothes, they are not ready to put in a lot of money. They are looking for something which could be cheap. Instead of buying expensive clothes, people are looking to buy gold products or something which has longevity,” he said.
5 October 2022, 07:29 GMT
On the other hand, Pravesh Trivedi, owner of Harry Collection, feels that despite increased footfall the shopkeepers selling clothes will not yield good profit during the festivals due to inflation.
“Inflation will play a spoilsport for a lot of us. We are getting the material at high cost while the consumers are looking for cheap one. We can’t compromise with quality so we are only left with one option that we will have to lower down our profit margin. Therefore, I don’t think that festive season will be as promising as it could have been,” Trivedi stated.
Although Indians are all decked up to celebrate the festival, the common citizen is suffering the pinch of inflation. Tradition and inflation have put them in a catch-22 situation, as on one hand they feel they have to follow the tradition, while on the other, they will have to compromise with their budget.
Samanvay Singh, who recently got married, told Sputnik that, “This will be my first Diwali after marriage and we will have to visit a lot of people including relatives and close friends. Since, it is a tradition that we will have to give some gift to them we are a bit worried because the list is quite long. With everything so expensive, I am still trying to figure out a budget which won’t have much impact on my pocket.”
On the other hand, Tarun Sachan, who works in an IT company, said that after two years of pandemic this Diwali also seems to be quite dull for a middle class family.
“It seems that now festivals are just for those with high net income as they can afford anything. The situation is very worrisome for a person from middle class because he has to follow the tradition while can’t afford spending much.”
He even said that this time Diwali is during the month end which will make the situation worse for people like him.
