The Indian economy has accelerated the speed, data released by Central Statistics Office (CSO) on last Friday has informed that Indian economy has grown by 8.2% in last quarter April-June. The GDP of India numbers of the first quarter in the current Financial year is much higher than the previous quarter's 7.7%. This is the highest growth in the last two years and beating all expectations of the analyst in the market. The data was released after the market last Friday which will have a very positive impact on Monday.
Sectors participants in GDP:
Almost all the sector participated to boost the GDP numbers in the last quarter. Manufacturing and construction sector which were in bad shape in last year same quarter have shown tremendous performance and strong recovery. Other sectors like electricity, gas, water supply, other utility services had registered good growth. Private consumption has also picked up in June, implying a recovery in consumer demand that drives the economy. The recent GDP numbers have proved that GST is successfully implemented and was a good initiative by NDA government. Finance minister Mr. Arun Jaitley tweeted “ India's GDP for the first quarter this year growing at 8.2% in otherwise an environment of global turmoil represents the potential of New India. Reforms and fiscal prudence are serving us well. India witnessing an expansion of the neo-middle class.”
 |
| GDP of India: Can 8.2% GDP growth boost Nifty to 12000 |
In 2017 Indian economy has surpassed France and claimed the 6th position in the world and it was not far before the United Kingdom according to World Bank data. With this current speed of economic growth, the day is not far behind when India will claim 3rd or 4th position in the world economy. But now the million dollar question is will the nifty manage to gain another 320 points to touch 12000 with the boost of 8.2% GDP of India number.
Can Nifty touch 12000 :
On Monday Nifty may open gap up but there are various other negative factors which can wash out the dream of hitting Nifty 12000. As former finance minister and Congress leader Mr. P Chindambram rightly tweeted “Q1 GDP at 8.2 percent is a statistics Rupee at 70 to a dollar is a reality. In Delhi Diesel at Rs 70.21 and Petrol at Rs 78.52, is a cruel blow.” We cannot ignore Rupee and Crude, which can be a cruel blow to the market and can halt the strong positive momentum. Other then rupee and crude investors should not forget the threat of fresh trade war between US and China.
It is also important to maintain the consistency in GDP of India's numbers in the next three quarters of this financial year. The consistency is required because if there is any temporary pause in the market the positive momentum can continue later during Diwali, and we can expect 12000 in Nifty.
If you need any clarification about the article please feel free to contact us and if you like the article then share with others.
Happy Investing
Finogyan Team
