According to Macquarie Group Ltd, India’s economic growth is expected to slow to 6.5% in the year ending March 2010 from the 7% forecast earlier as weak monsoon rainfall affects the agriculture sector.
Macquarie raised its estimate for gross domestic product expansion for the following year to 8% from 7.5%.
Mr Rajeev Malik an economist at Macquarie in Singapore said that “This downgrade is more a hiccup than the beginning of a GDP downgrade cycle as we expect quarterly GDP growth from calendar 2010 to reach 8%. The downward revisions are related only to the agriculture sector as non agricultural forecasts have, in fact, been raised.”
Mr Montek Singh Ahluwalia deputy chairman of the Planning Commission told reporters in New Delhi that India’s economic growth may slow until December because of the impact of a drought in the country,
Growth in Asia’s third-largest economy may slow to 5.9% this quarter from the 6.1% expansion in the previous three months, according to the median forecast of nine economists in a Bloomberg News survey. India has declared drought or drought-like conditions in almost half the country.
Macquarie in the note said that Indian stocks appear a little expensive over the next quarter and expecting near term gains in share prices to be limited.
Macquarie maintained its target for the Sensitive Index at 18,000 by March. It raised its rating on automobile stocks to overweight from underweight.
(Sourced from http://www.steelguru.com/news/index/2009/09/09/MTEwODUw/Macroeconomic_indicators_-_Macquarie_lowers_Indian_forecast.html)
Tuesday, September 8, 2009
Macroeconomic indicators - Macquarie lowers Indian forecast
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