An RBI report says that a sample of non-financial listed entities accounting for about four-fifths of such firms’ market capitalization showed a sharp rise in profits despite battered sales in the second quarter of 2020-21. Also, asset liquidations by private manufacturers in the first half helped mobilize funds to reduce liabilities and increase cash in hand. It will take reliable signs of trend reversals here to bolster a real revival. But the output of capital goods, a barometer of investment, continued to contract, even if at a slower pace. To support such a revival, RBI should keep a close vigil on prices and push for bank reforms.

Source: Mint November 15, 2020 15:00 UTC