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Investments in Indian Equity and Research => Indian Economy, Macro, RBI Policies => Topic started by: komal on December 04, 2011, 08:36:01 PM

Title: India GDP Growth Engine Slowsdown
Post by: komal on December 04, 2011, 08:36:01 PM
GDP growth for 2QFY12 slowed to 6.9% from 7.7% in 1QFY12. Much of the weakness, as expected, was from the industrial sector.

Mining sector underwent a contraction while manufacturing growth plummeted to 2.7% from 7.2% in the last quarter. Services sector growth continued to be relatively robust at 8.7%. Weakness in the investment expenditure was stark, growing at 1.2% in 2QFY12 against 9.6% in 1QFY12, in real terms.

Analysts across the street maintain estimates for FY2012E at 7.1% and FY2013E at 6.9%. So Earnings GROWTH for SENSEX YoY will also be tepid.