- India’s economic growth slipped further to hit an over six-year low of 4.5 percent in July-September, according to official data released on Friday.
- The previous low was recorded at 4.3 percent in the January-March period of 2012-13. The Gross Domestic Product (GDP) growth was registered at 7 percent in the corresponding quarter of 2018-19.
- During the six-month period (April-September 2019), the Indian economy grew 4.8 percent as against 7.5 percent in the same period a year ago.
- The Reserve Bank had lowered the GDP growth projection for 2019-20 to 6.1 percent from an earlier forecast of 6.9 percent.
- China’s economic growth was 6 percent in July-September 2019, which was the weakest expansion in over 27 years.
The GDP figures for the second quarter of the current financial year i.e. July-September are to be released on Friday. It is estimated that the GDP rate in this quarter will be between 4.3 and 4.7 percent, which is less than 5 percent in the first quarter.
Due to this apprehension, there was a strong selling in the Indian stock market on the last trading day of the week. As a result, the Sensex fell 336.36 points to close at 40,793.81 at the end of trading, while the Nifty dropped by 95.10 points to settle at 12,056.05. At the same time during the trading, the SENSEX fell by over 400 points. Please tell that on Thursday, the Sensex and the Nifty touched the highest level ever. On Thursday, the Sensex crossed 41 thousand 163 points and the Nifty reached the highest level of 12,158.80 points.
Fear of fall in GDP
There is a possibility that the GDP growth rate in the second quarter may go down to 4.7 percent from below 5 percent. Sources in the Finance Ministry believe that the core sector and IIP have been in a very bad condition in the two months of the July-September quarter, which will have an impact on the growth rate of gross domestic product (GDP). In these conditions, there is an atmosphere of fear among investors. Before that, during the first quarter of 2019-20, India’s economy grew at a rate of five percent, which is the lowest in the last six years.
According to the SBI report, growth of 4.2 percent!
The country’s largest state-run bank, the State Bank of India, released a report that estimated GDP growth at only 4.2 percent in the second quarter. The bank considers this to be the reason for low automobile sales, a slowdown in air traffic, poor condition of the care sector and a decline in construction and infrastructure investment. According to the report, the growth forecast for FY 2020 has now come down from 6.1 to just five percent.
How about which share?
Talking about the BSE Index, Yes Bank’s share fell the most at the end of trading. At the same time, shares of HUL, Mahindra, SBI, Tata Motors, Vedanta, Reliance, and Axis Bank also collapsed. However, shares of Airtel, HDFC Bank, and NTPC closed on the green mark.
