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Friday, September 03, 2010
Indian economy on strong wicket...grows 8.8% in Q1
India's economy grows by 8.8% in Q1 FY11 as against 8.6% expansion in the previous quarter (January-March), data released by the Government showed. This is the fastest pace of economic growth for the country in two-and-a-half years and might put further pressure on the Reserve Bank of India (RBI) to hike key interest rates to rein in inflation. India’s US$1.3 trillion economy may expand by 8.5% in the year ending on March 31, 2011, the most in three years, the RBI said on July 27. The benchmark wholesale-price inflation rate has hovered around or above 10% since January. 10-year government bond yields climbed last week to as much as 8.07%, near the highest level in four months, on concerns that the RBI may raise rates for the fifth time since mid-March to contain inflation. The RBI is scheduled to release its next monetary policy statement on Sept. 16. The RBI's repurchase rate is currently at 4.5% and the repurchase rate is at 5.75%.
Segment-wise Growth Rates:
Manufacturing growth at 12.4% vs 16.3 (QoQ).
Agriculture growth at 2.8% vs 0.7% (QoQ).
Mining growth at 8.9% vs 14% (QoQ).
Construction growth at 7.5% vs 8.7% (QoQ).
Electricity/Gas/Water growth at 6.6% vs 7.1% (QoQ).
Trade/Hotels/Transport/Comm. growth at 12.2% vs 12.4% (QoQ).
Finance/Insurance/Real Estate growth at 8.0% vs 7.9% (QoQ).
Community/Social Services growth at 6.7% vs 1.6% (QoQ).