The recommendation of the Seventh Pay Commission is enthusiastic about the Cabinet's approval, though its hope was earlier. The stock market has responded positively, but it was not expected that the boom was like a market. The main reason for this soft reaction of the market is that the market had given a positive response only when it was mentioned that the date of implementation of the report of the Seventh Pay Commission while presenting the central budget in February was mentioned.
In spite of this, the time the recommendations of the Pay Commission have been approved, it is worth mentioning and welcome. This step has been taken up when there is an atmosphere of ups and downs in the stock market due to global economic reasons. The commission recommended 23.55 per cent increment which will be effective from January 1, 2016. Therefore, if the outstanding amount will be paid in installments from September, then the payment of the outstanding amount will take six to eight months, which will not be as much as the central workers were given in the form of Array in 2008. Do not forget that the last payment was made during the global economic crisis, when the government had also introduced the stimulus package, in which excise duty was reduced from sixteen percent to eight percent and from October 2008 to April 2009, in the interest rates, 425 basis points were deducted. It was in addition to the favorable government policies for the rural economy and the spectacular investment in the private sector.
With the implementation of the recommendations of the Seventh Pay Commission, the demand for consumers in the market will increase, which will boost the economy. The secretaries of economic affairs are hoping that the extra money that will come in the hands of government employees will play an important role in strengthening the housing and sustainable consumer sector. After the government announcement, stock prices of auto and consumer durable companies were seen steadily. It is expected that the rise in the demand for consumer goods in the economy will raise the stock market. Yet there are some other factors that will play a role in this conceptual outcome. The most prominent role will be the actual monsoon, which will affect the rural economy. Payment of salary increments will take place at the time when the festival season will also start. This is good news, because then more discounts and offers will be offered on behalf of consumer goods and housing industry. This will strengthen the many sectors of the economy, such as cement, housing, paints and other housing related industries. Given the time of payment, the travel and textile sector is expected to be strengthened.
Although the economy will increase, the burden on the government will also increase, especially in times when inflation is on the rise. Demand for more money will be increased if consumers get more money, but it will also increase inflation. The impact of additional burden on the government will also be on the target of bringing the fiscal deficit to 3.5%, which can grind all the fun.
Reserve Bank Governor Raghuram Rajan has said in the policy statement of central bank, in which he has expressed fear that inflation will be particularly high after the payment of the seventh pay commission. There are indications that the Reserve Bank will see the impact of wage growth and monsoon, due to which the central bank will likely delay in interest rate cuts. In the event of non-deduction of interest rate, the response to the market and the economy will not be as positive as the expectations are being made by implementing the Pay Commission.
We are living at a time when the whole world is connected to each other, and only local issues do not determine the speed of the market and economic activities. In view of the uproar of Brexit, the US Federal Reserve on interest rates cuts and the results of the US elections, we can not deny the possibility of a decline in the economy, which can present a completely different picture. The currency market, the rise in oil prices and the slowdown in the global economy will affect the Indian market and the economy.
Our young people, who get employment, will face difficult challenges for employment in a difficult economy, which could spoil the stock market prospects. This does not mean that we will see investors pulling their money from the market on a large scale, but there will be a sense of caution, not happiness, which was seen after implementing the Sixth Pay Commission.
The good thing is that we are out of the constraints of infrastructure. Work is being done in this area, and the new ones are being approved fast. It is also a good time for new investors due to India's effective story and no signs of any kind of obstruction in the long term. Those employees who will get the benefit of increment, should use this opportunity to separate some part of their increment and invest in the long term stock market. Participation in the stock market is essential to earn money.
Source - Amar Ujala
In spite of this, the time the recommendations of the Pay Commission have been approved, it is worth mentioning and welcome. This step has been taken up when there is an atmosphere of ups and downs in the stock market due to global economic reasons. The commission recommended 23.55 per cent increment which will be effective from January 1, 2016. Therefore, if the outstanding amount will be paid in installments from September, then the payment of the outstanding amount will take six to eight months, which will not be as much as the central workers were given in the form of Array in 2008. Do not forget that the last payment was made during the global economic crisis, when the government had also introduced the stimulus package, in which excise duty was reduced from sixteen percent to eight percent and from October 2008 to April 2009, in the interest rates, 425 basis points were deducted. It was in addition to the favorable government policies for the rural economy and the spectacular investment in the private sector.
With the implementation of the recommendations of the Seventh Pay Commission, the demand for consumers in the market will increase, which will boost the economy. The secretaries of economic affairs are hoping that the extra money that will come in the hands of government employees will play an important role in strengthening the housing and sustainable consumer sector. After the government announcement, stock prices of auto and consumer durable companies were seen steadily. It is expected that the rise in the demand for consumer goods in the economy will raise the stock market. Yet there are some other factors that will play a role in this conceptual outcome. The most prominent role will be the actual monsoon, which will affect the rural economy. Payment of salary increments will take place at the time when the festival season will also start. This is good news, because then more discounts and offers will be offered on behalf of consumer goods and housing industry. This will strengthen the many sectors of the economy, such as cement, housing, paints and other housing related industries. Given the time of payment, the travel and textile sector is expected to be strengthened.
Although the economy will increase, the burden on the government will also increase, especially in times when inflation is on the rise. Demand for more money will be increased if consumers get more money, but it will also increase inflation. The impact of additional burden on the government will also be on the target of bringing the fiscal deficit to 3.5%, which can grind all the fun.
Reserve Bank Governor Raghuram Rajan has said in the policy statement of central bank, in which he has expressed fear that inflation will be particularly high after the payment of the seventh pay commission. There are indications that the Reserve Bank will see the impact of wage growth and monsoon, due to which the central bank will likely delay in interest rate cuts. In the event of non-deduction of interest rate, the response to the market and the economy will not be as positive as the expectations are being made by implementing the Pay Commission.
We are living at a time when the whole world is connected to each other, and only local issues do not determine the speed of the market and economic activities. In view of the uproar of Brexit, the US Federal Reserve on interest rates cuts and the results of the US elections, we can not deny the possibility of a decline in the economy, which can present a completely different picture. The currency market, the rise in oil prices and the slowdown in the global economy will affect the Indian market and the economy.
Our young people, who get employment, will face difficult challenges for employment in a difficult economy, which could spoil the stock market prospects. This does not mean that we will see investors pulling their money from the market on a large scale, but there will be a sense of caution, not happiness, which was seen after implementing the Sixth Pay Commission.
The good thing is that we are out of the constraints of infrastructure. Work is being done in this area, and the new ones are being approved fast. It is also a good time for new investors due to India's effective story and no signs of any kind of obstruction in the long term. Those employees who will get the benefit of increment, should use this opportunity to separate some part of their increment and invest in the long term stock market. Participation in the stock market is essential to earn money.
Source - Amar Ujala
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