One of the things that we saw which was slightly disappointing in the GDP numbers was that domestic consumption is showing signs of continuing to slowdown, Arvind Sanger, Managing Partner at Geosphere Capital Management said.
The Global markets have been a busy place. In an interview with CNBC-TV18, Arvind Sanger, Managing Partner at Geosphere Capital Management decoded the moves.
Q2 gross domestic product (GDP) numbers are slightly positive. We know that there was a lot of the destocking that happened pre-goods and services tax (GST), so it was a transitional quarter therefore the GDP numbers are okay but not where we hope for them to be, he said.
It doesn’t confirm that we are headed to 7.5-8 percent GDP growth which is what our growth is for FY19 when the positive effects of GST start to show up. So in that sense it is a transitional quarter, he added.
According to him, developed markets are now in an improving cycle in terms of growth improving but usually that is the time when emerging markets also do well. We should start to see qualitative easing winding up in the next few quarters.
India is also going to be a beneficiary from this global growth, said Sanger.
One of the things that we saw which was slightly disappointing in the GDP numbers was that domestic consumption is showing signs of continuing to slowdown, he further mentioned.
We are being a little bit slow to get aggressive because we still think that there is no great straight moon-shot, he said.
For full interview, watch accompanying video...
