Ahead of the fourth-quarter earnings season, macro parameters suggest growth is uneven, reports fe bureau in New Delhi.
Ahead of the fourth-quarter earnings season, macro parameters suggest growth is uneven, reports fe bureau in New Delhi. According to HSBC, around half the economy is improving while 50% is not and over the last few months, while non-financial services have gathered momentum, manufacturing seems weaker. Much of the improvement has been driven by the fall in crude oil prices. Disappointingly, CMIE data for the January-March quarter suggest the stock of stalled investment projects has continued to rise, although volatile new investment projects have improved. Some economists expect the Reserve Bank of India to lower its FY17 GVA growth projections, albeit marginally, to 7.5%, possibly with downside risks from 7.6% earlier, given the recent slowdown in industrial momentum. Factory output between April and January has averaged just 2.7% with the capital goods segment clocking in a negative 0.6%; in FY15, factory output grew at 2.7% on a base of 0.1 % in FY14.