gfiles magazine

December 20, 2013

STOCK DOCTOR | The worst may be over for now

dr gs sood
The worst may be over for now
THE green shoots are at last visible in the Indian economy, with the current account deficit (CAD) narrowing sharply in the September quarter to 1.2 per cent of GDP as against 4.9 per cent in the quarter ending June, thanks to higher exports led by recovery in the US and Europe and lower imports due to curbs on non-essential items such as gold. This has raised expectations that the CAD for the full year may remain well within the target or even be lower at around 2.5 to 3 per cent of GDP and may give the government some elbow room to face any future global shocks.
This is coupled with growth accelerating to 4.8 per cent from 4.4 per cent in the preceding quarter mainly due to higher growth in agriculture, industry and exports. The Purchasing Managers’ Index (PMI) for November rose to 51.3 points from 49.6 in the previous month, indicating a sharp pick-up in manufacturing. All this has led to the rupee strengthening on the back of FIIs showing faith in the Indian market and has compelled analysts to review their opinion that can best be described as a shift from.... Read More. 

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