India’s annua growth in first quarter is at 9.3 pc – quite impressive, as it sounds but it doesnt seem to affect share market as the share market come down by about about 600 points yesterday, whereas rupee was also noted to come down to its 3 year low value.
Here goes the news –
GDP growth at 9.3 pc, but mkts unimpressed
India clocked annual growth in the January-March quarter of 9.3 per cent, which analysts said strengthened the case for higher interest rates but may not turn the tide for its falling markets.
The main share index had pared losses to close 3.6 per cent down by 1030 GMT yesterday, after dipping 6 per cent amid worries that foreign funds might reduce holdings, while the rupee came off a three-year low and bond prices edged lower.
The expansion rate in the fourth quarter of India’s financial year, which runs from April to March, was higher than the revised October-December rate of 7.5 per cent and above analysts’ forecast for 7.8 per cent annual growth in Gross Domestic Product.
“The view that interest rates should rise gets reinforced on the back of the current growth data,” said Amogh Deshpande, senior analyst at Securities Trading Corporation of India. “(A) further increase in rates will not impede growth, though inflation in asset prices remain a matter of concern.”