Getty ImagesRelated
Related Companies
NSE
BSE
Mumbai: Motilal Oswal Financial Services expects India’s gross domestic product (GDP) to contract 6-7 per cent in the second quarter ended September, lower than the 11 per cent fall expected by the wider market.
In its ‘Ecoscope’ report on Monday, Motilal said economic indicators show that the fall will be lower than what is expected.
“We continue to believe that the fall could be lower at 6-7 per cent vis-à-vis 23.9 per cent YoY contraction in 1QFY21. Some indicators for Sep’20 such as e-way registrations, power generation, mobility indices and auto sales also suggest that economic activity has continued to pick up. An important factor to ponder over now is whether economic activity will start growing from Oct-Nov’20 and continue after the festive season. Since the Covid-19 pandemic is still not contained in India and partial lockdowns continue, the progress needs to be closely watched,” Motilal said.
According to the recent Bloomberg consensus, the market expects another double-digit decline (of 11 per cent ) in India’s real GDP growth in the second quarter after a 23.9 per cent contraction in the first quarter ended June 2020.
In its ‘Ecoscope’ report on Monday, Motilal said economic indicators show that the fall will be lower than what is expected.
“We continue to believe that the fall could be lower at 6-7 per cent vis-à-vis 23.9 per cent YoY contraction in 1QFY21. Some indicators for Sep’20 such as e-way registrations, power generation, mobility indices and auto sales also suggest that economic activity has continued to pick up. An important factor to ponder over now is whether economic activity will start growing from Oct-Nov’20 and continue after the festive season. Since the Covid-19 pandemic is still not contained in India and partial lockdowns continue, the progress needs to be closely watched,” Motilal said.
According to the recent Bloomberg consensus, the market expects another double-digit decline (of 11 per cent ) in India’s real GDP growth in the second quarter after a 23.9 per cent contraction in the first quarter ended June 2020.