Stocks

Markets may open in red after Q1 GDP growth hits 3-year low of 5.7%

A man looks at a screen across the road displaying the Sensex on the facade of the Bombay Stock Exchange (BSE) building in Mumbai.

The country’s economy has lost further steam in the April-June quarter, with growth sliding to its lowest level in more than three years.

Dalal Street investors were left disappointed as government data showed the gross domestic product grew 5.7% in the latest quarter, its slowest pace since the January-March quarter 2014.

The figure was much below several poll estimates that ranged between 6.4-6.6%.

Experts predicted the market may open in the red on Friday.

“The lingering impact of demonetisation is visible in the low growth of construction. The GDP and GVA (growth value added) estimates have undershot our and market expectations by a considerable degree,” Aditi Nayar, economist, Icra, told Reuters.

India Inc expressed disappointment over slowing down of India’s GDP growth to 5.7%, as the industry was anticipating a rebound from low growth numbers.

“Continuous fall in fixed investments, unsolved problem of banks’ NPAs (non-performing assets) in India, global policy and political risks and tightening financial conditions on account of deleveraging financial institutions and slowdown in real estate could weigh negatively,” industry lobby Assocham said.

Crisil’s D K Joshi termed the GDP number as “disappointing” as the expectation was that the growth would be 6.5%.

 

 

 

[“source=hindustantimes”]

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