GDP data for Q3FY20 HIGHLIGHTS: Economy finally looks up after 6 quarters of straight fall, grows at 4.7%

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Updated:Feb 28, 2020 6:17:07 pm

After six-months of straight fall, the GDP grew at 4.7% in Q3FY20, the government data released on Friday showed.

According to a CNBC poll, the economy was expected to grow at 4.6. per cent in the quarter under review.

After six-months of straight fall, the GDP grew at 4.7% in Q3FY20, the government data released on Friday showed. According to a CNBC poll, the economy was expected to grow at 4.6. per cent in the quarter under review. K Subramanian, Chief Economic Adviser, on Thursday said that the slowdown in the economy that has lasted for 13 quarters is part of a business cycle. Finance Minister Nirmala Sitharaman had recently said that the ‘concerted efforts’ taken by the government and the RBI have started giving results and the green shoots of recovery are not just visible but also sustainable.  Meanwhile, the S&P BSE Sensex ended the day down by 1,448 points at 38,297 points while the 50 stock Nifty ended the week at 11,219 points losing 414 points as Indian indices followed their global peers. Only one the 30-stocks on the BSE Sensex were trading in the green. Tata Steel, Tech Mahindra were the biggest losers on BSE Sensex.

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Highlights

    17:54 (IST)28 Feb 2020
    Estimation of per capita income

    The Per Capita Income in real terms (at 2011-12 Prices) during 2019-20 is estimated to attain a level of Rs 95,706 as compared to Rs 92,085 in the year 2018-19, giving a growth of 3.9 percent during 2019-20, as against 4.8 per cent in the previous year. The Per Capita Income at current prices during 2019-20 is estimated to be Rs 134,432, showing a rise of 6.3 percent as compared to Rs 1,26,521 during 2018-19.

    17:53 (IST)28 Feb 2020
    Real GDP growth in FY20

    Real GDP or Gross Domestic Product (GDP) at Constant (2011-12) Prices in the year 2019-20 is estimated to attain a level of Rs 146.84 lakh crore, as against the First Revised Estimate of GDP for the year 2018-19 of Rs 139.81 lakh crore, released on 31st January 2020. The growth in GDP during 2019-20 is estimated at 5.0 percent as compared to 6.1 percent in 2018-19.

    17:50 (IST)28 Feb 2020
    Need more time to assess impact of Coronavirus, says RBI Governor Shaktikanta Das

    RBI governor Shaktikanta Das on Friday said that more time is needed to assess the impact of Coronavirus on the Indian economy, even as it may impact global growth.

    17:24 (IST)28 Feb 2020
    Production of coal, steel grows

    The infrastructure sectors had expanded by 1.5 per cent in January 2019. The production of coal, refinery products and electricity grew by 8 per cent, 1.9 per cent and 2.8 per cent, respectively. Sectors which recorded negative growth during the month under review are crude oil, natural gas, and fertiliser. During the April-January period, core industries growth slowed down to 0.6 per cent against 4.4 per cent in the year-ago period. The eight core sectors recorded negative growth from August 2019 to November 2019.

    17:17 (IST)28 Feb 2020
    April-January Fiscal Deficit recorded at Rs 9.85 lakh crore

    April-January Fiscal Deficit recorded at Rs 9.85 lakh crore Vs Rs 7.70 lakh cr (YoY). January fiscal deficit comes in at Rs 53,700 crore.

    17:15 (IST)28 Feb 2020
    Coal production increases

    Coal production increased by 8.0 per cent in January, 2020 over January,2019. Its cumulative index declinedby 2.4 per centduring April toJanuary, 2019-20over corresponding period of the previous year.

    17:14 (IST)28 Feb 2020
    January eight core industries growth at 2.2%

    January eight core industries growth at 2.2% Vs 2.1% (MoM)The Eight Core Industries comprise 40.27 per cent of the weight of items included in the Index of Industrial Production (IIP). The combined Index of Eight Core Industries stood at 137.5 in January, 2020, which increased by 2.2per centas compared to the index of January,2019. Its cumulative growth during April, 2019 to January, 2020was 0.6per cent.

    16:54 (IST)28 Feb 2020
    Inflation may remain higher: RBI

    The RBI MPC revised the consumer price index (CPI) inflation projection upwards to remain between 5.1 and 4.7 per cent for the period from October 2019 to April 2020; a range higher than the 4.6 per cent seen in the former.

    16:53 (IST)28 Feb 2020
    RBI's GDP forecast

    RBI sharply cuts GDP forecast to 5% from 6.1% The Reserve Bank of India (RBI) on Thursday reduced its annual economic growth forecast to 5 per cent, from 6.1 per cent it predicted in October.

    16:49 (IST)28 Feb 2020
    India may struggle to achieve 5% GDP growth, says US economist

    India will “struggle” to achieve 5 per cent GDP growth in 2020 as the significant deceleration in past few quarters was largely owing to credit squeeze which is a cyclical problem, said noted American economist Steve Hanke who currently teaches applied economics at Johns Hopkins University (USA). He pointed out that India experienced an unsustainable credit boom, and now the chickens are coming to roost with a massive pile of non-performing loans piled up, primarily at the state-owned banks.

    16:45 (IST)28 Feb 2020
    Coal, steel, cement may show sharp improvement, says report

    In Q4FY20, the GDP growth rate may be recorded at 5 per cent, just above the RBI’s projection of 4.9 per cent, Barclays report said. The coal, steel, and cement showed a sharp sequential improvement in Q4 2019, even as the recovery in the services sector remains lacklustre, owing to weak credit growth, the report also said.

    16:44 (IST)28 Feb 2020
    Spurt from corporate tax rate cut may be significant trigger: Barclays

    The economic growth is expected to improve in Q4FY20 after six consecutive quarters of slowdown, analysts said. Support from the corporate tax rate cuts, healthy crop production and fading away of weather disruptions in mining and allied sectors are likely to be the significant drivers of the growth rebound, the Barclays report said.

    16:41 (IST)28 Feb 2020
    Indian economy seeing a slowdown

    The Indian economy is seeing a slowdown for some time now on account of both global and domestic factors. According to the first GDP advance estimates released by the government, the economy is expected to grow at 5 per cent in FY20.

    16:40 (IST)28 Feb 2020
    GDP growth rate may remain flat: SBI

    SBI Ecowrap research report released on Wednesday said that the GDP growth rate will remain flat at 4.5 per cent similar to as in Q3FY20. In addition, the SBI report revised upwards FY20 GDP at 4.7 per cent from 4.6 per cent with a downward revision in FY19 GDP. “With the FY19 GDP growth being revised downwards steeply to 6.1% in FY19 it indicates that the growth slowdown was much more significantly entrenched and had started from April 17 onwards / FY18 after reaching a peak of 8.3% in FY17 and only worsened in FY19 (post the ILF&S crisis) and in FY20 it has reached its nadir with growth projected at 5% by CSO (with a downward bias),” the report added.

    16:38 (IST)28 Feb 2020
    GDP growth rate at 4.5% expected

    The GDP growth is expected to be at 4.5 per cent and GVA growth at 4.3 per cent in Q3FY20, the report added. The government is scheduled to release official GDP growth data for the December-ended quarter on February 28, 2020. The Indian economy grew at a 6-year low of 4.5 per cent in Q3FY20. According to a Reuters poll of economists, the GDP may be recorded at 4.7 percent in the last quarter of 2019.

    16:37 (IST)28 Feb 2020
    Another quarter with low GDP growth rate?

    “With the liquidity conditions in the economy having improved, albeit marginally, coupled with robust growth in deposits is likely to improve growth in the financial services segment. However, subdued bank credit -growth continuing is likely to weigh on the growth of this segment”, the report also said. The mining and quarrying, manufacturing and construction sectors are expected to see negative growth, CARE Ratings also said.

    15:12 (IST)28 Feb 2020
    Top shares to buy as Sensex, Nifty bleed: Analyst share top stock picks, and sectors to avoid

    Even as domestic equity markets crashed today wiping off the Rs 5 lakh crore wealth within minutes of opening, analysts see buying opportunity in some sectors and have advised to buy a few stocks. Sensex, Nifty crashed over 3 per cent in the trade today mirroring the global sell-off on the back of coronavirus fears. However, market watchers see coronavirus fears as short term in nature and expect markets to rebound after a quarter or so. Amid today’s fall, investors can bet on these stocks and avoid certain sectors to stay safe. Chemical stocks which are into both pharma and intermediate, which have been performing good can be bought, says Narendra Solanki, AVP- Equity Research, Anand Rathi Shares and Stock Brokers.

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    15:11 (IST)28 Feb 2020
    Should you buy or sell stocks as Sensex, Nifty panic? How much money to put into share market today

    Domestic equity benchmarks Sensex and Nifty crashed in Friday’s trading session following a rout in the global equity markets. Overnight on Wall Street, all three benchmarks Dow Jones Industrial, S&P 500 and Nasdaq plunged over 4 per cent in the trading. Around 1 PM, Sensex was trading 1194 points or 3 per cent lower at 38,550; while broader Nifty 50 index slipped below crucial 11,300 level to trade at 11,254. Amid this extreme weakness in the domestic markets, analysts see buying opportunity at the current levels. However, investors are advised to buy in tranches and not put all the money in one go, as more volatility is expected in the coming days.

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    14:09 (IST)28 Feb 2020
    As you rush in to buy shares amid Sensex, Nifty crash today, analysts have a word of caution

    With Coronavirus sending the markets into a downward spiral as Chinese economy remains in a virtual shutdown, global markets are seeing as sell off as investors are failing to find any positive news around Coronavirus.

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    13:07 (IST)28 Feb 2020
    Silver lining for domestic carriers: Amid coronavirus scare, jet fuel prices drop

    The outbreak of coronavirus is proving to be a mixed bag for the Indian aviation industry. While the sector is one of the worst affected due to a drop in passengers, coronavirus has some silver linings for the domestic aviation industry as there is a drop in the jet fuel prices.

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    13:03 (IST)28 Feb 2020
    Coronavirus fears may hit Asia growth in Q1

    There are indications that the growth slowdown will spill over into the early part of Q2 as well. Impact on Asia growth will be significant.

    12:51 (IST)28 Feb 2020
    Economic slowdown: Measures taken by Modi govt will boost growth, says SBI MD Dinesh Khara

    Slowdown in the Indian economy has bottomed out and measures taken by the government in the recent budget to improve capacity to spend in rural sector, infrastructure creation and inviting foreign investments will boost growth, State Bank of India Managing Director Dinesh Khara has said.

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    11:58 (IST)28 Feb 2020
    Tata stocks fall by as much as 9 per cent

    Tata Steel was the biggest loser on BSE Sensex, down by 7.9 per cent. On NSE Nifty 50, Tata Motors was down 9.5 per cent; Tata Power slipped 3.65 per cent and Tata Consultancy Services was down by 3.16 per cent.

    11:24 (IST)28 Feb 2020
    India’s GDP seen growing at 4.7% y-o-y in December quarter, with Coronavirus impact to come

    Having suffered its weakest expansion in over six years in the September quarter, India’s economy probably fared slightly better in the December quarter, before suffering a relapse due to the impact of the coronavirus globally, analysts said. Gross domestic product data due to be released on Friday will cover up to the end of last year, before the epidemic in China had sparked fears of a pandemic.

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    10:50 (IST)28 Feb 2020
    India VIX is up 19%

    India's volatality index jumped more than 19 per cent today as the markets witnessed a bloodbath. Sensex was down more than 1.100 mark while Nifty 50 was below the 11,300 mark.

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    10:18 (IST)28 Feb 2020
    Sensex loses 1,000 points as Nifty 50 moves below 11,400 mark; here’s what is moving markets today

    Global markets are witnessing nothing less than a bloodbath this week and Indian benchmark Indices are following suit. On Friday morning, benchmark S&P BSE Sensex opened down by a staggering 1,000 points or 2.6 per cent, while the NSE Nifty 50 was below the 11,400 mark losing 316 points or 2.7 per cent.

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    10:07 (IST)28 Feb 2020
    All sectoral indices are trading in the red on Friday morning

    None of the sectoral indices offered any respite as all were down. Nifty Metal declined the most, down 5.51per cent. With Tata Steel and Jindal Steel contributing to its downfall.

    09:46 (IST)28 Feb 2020
    Tata Steel, Tech Mahindra and Infosys among lose the most on S&P BSE Sensex

    Tata Steel which tanked 6.42 per cent; Tech Mahindra which slipped 4.80 per cent and Infosys that was down 4.31 per cent.  While on the NSE Nifty 50, Tata Motors was the biggest loser, down 7.37 per cent on Friday morning.

    09:29 (IST)28 Feb 2020
    Sensex loses 1,000 points while the 50-stock Nifty starts the day below 11.400 mark

    As markets continued to fall as cases of Coronavirus continued to spike across the globe. All of the 30 stocks on Sensex were in the red, Tech Mahindra, Tata Steel and HCL tech were the top losers.

    09:01 (IST)28 Feb 2020
    Fear factor: Asia growth in Q1 to bear the brunt of virus

    As the Coronavirus spreads far and beyond, the impact of the same on the global economy and the Asian economy is likely to be felt in the coming quarters. The slowdown could spillover to Q2 of the coming fiscal as well.

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    08:43 (IST)28 Feb 2020
    Coronavirus outbreak: Global shares head for worst week since 2008 financial crisis

    Global share markets headed for the worst week since the darkest days of the financial crisis in 2008 as investors braced for the coronavirus to morph into a pandemic and derail world economic growth. Hopes that the epidemic that started in China would be over in a few months and economic activity would return to normal have been shattered, as new infections reported around the world now surpass those in China.

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    08:18 (IST)28 Feb 2020
    Average monthly data usage per user surpasses 11 GB in December: Report

    The index also revealed that overall data traffic in the country increased 47% in 2019, driven by continued fourth-generation wireless (4G) consumption that constituted 96% of the total data traffic consumed across the country.

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    08:17 (IST)28 Feb 2020
    Express Adda: Slump part of business cycles, bottoming out, says CEA Krishnamurthy Subramanian

    The government’s Chief Economic Adviser (CEA) Krishnamurthy V Subramanian has said the deceleration in economic growth for 13 quarters is part of business cycles that stem from more “prolonged than average” slowdown in the financial sector which has now started showing signs of bottoming out.

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    08:15 (IST)28 Feb 2020
    State of the economy: Efforts of RBI, govt paying off, says FM Nirmala Sitharaman

    A day after prodding state-run banks to shun unreasonable risk aversion and boost lending, finance minister Nirmala Sitharaman on Thursday painted a rosy picture of the economy.

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