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growth slowdown raises expectations for central bank monetary measures
The GDP growth slowed to 5.4% in the September quarter, the lowest in seven quarters and below the RBI's 7% projection, primarily due to declines in manufacturing and mining. ICRA's Aditi Nayar anticipates a potential miss of Rs 1 trillion in government capex for the year but remains optimistic about agricultural growth in the second half, influenced by normal monsoon conditions. She predicts a status quo in December's monetary policy, with a higher chance of a rate cut in February.
India"s GDP growth projected at 6.5 percent amid economic challenges
India"s GDP growth is projected to decline to 6.5% for the September quarter, impacted by heavy rains and weaker corporate performance. However, ICRA maintains a 7% growth estimate for FY25, anticipating a recovery in economic activity in the latter half of the fiscal year, supported by government spending and improved rural sentiment. Official Q2 economic data is expected on November 30.
Q2 2024 earnings season gains momentum with major companies reporting results
Major companies including Coal India, JSW Steel, DLF, and Interglobe Aviation are set to release their Q2 earnings reports today, joining a wave of firms that have already reported results. Notable performances include Reliance Industries with a profit decline of 4.8%, while HCL Technologies and TCS reported profit increases of 10.5% and 5.0%, respectively. ICRA's profit rose by 15.6% to Rs 36.72 crore, and Oracle Financial Services Software saw a significant profit increase of 38.4% to Rs 577.70 crore.
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