- On November 30, India will release its GDP data for the second quarter.
- Head of Research at Arihant Capital predicts India‘s Q2 GDP print to be 7%, down from 7.8% in Q1.
- Core GDP growth is anticipated to slightly decrease from 8.7% in Q1FY24 to 8.4% in Q2FY24.
On Thursday, November 30, India will release its GDP data for the second quarter, which is anticipated to show some quarterly moderation.
Market analysts, however, think that the market may have priced in a small slowdown in the Q2 GDP report and that it won’t have a big impact on investor sentiment. Head of Research at Arihant Capital Abhishek Jain predicts India’s Q2 GDP print to be 7%, down from 7.8% in Q1.
India Q2 GDP
India’s GDP growth is predicted to decrease in Q2FY24 as a result of several issues, including economic difficulties in rural areas, postponements in holiday celebrations, and a slowdown in government capital spending.
The government’s initiatives, the return of festive activities in Q3, and the expectation of a strong Q4 will prevent a major dent in domestic market sentiment, even though this growth rate is still higher than current market expectations.
Investors should see any weakness in Q2 GDP as a chance to get into the stock market because the Indian economy will strengthen in the upcoming quarters and the short-term setbacks in Q2 won’t have a long-term negative effect.
Brokerage firm Nirmal Bang projects Q2FY24 GDP growth of 6.8% YoY, up from the 6.5% estimate provided by the RBI, and GVA growth of 6.6%. Core GDP growth is anticipated to slightly decrease from 8.7% in Q1FY24 to 8.4% in Q2FY24.
Except for construction, the industry is predicted to grow by 8% YoY in Q2FY24, helped by robust increases in corporate profitability and industrial production (IIP). Construction and other services are predicted to grow at a YoY rate of 7.3%, with some drag from decreased government spending.
