Motilal Oswal - MOSL: ECOSCOPE-CAD widened to 1.2% of GDP in 2QFY18-However, healthy financial inflows lead to addition of USD9.5b to forex reserves

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Motilal Oswal

Nikhil Gupta

MOSL: ECOSCOPE-CAD widened to 1.2% of GDP in 2QFY18-However, healthy financial inflows lead to addition of USD9.5b to forex reserves

â€‹ECOSCOPE: CAD widened to 1.2% of GDP in 2QFY18; However, healthy financial inflows lead to addition of USD9.5b to forex reserves

Indiaâ€™s current account deficit (CAD) widened to USD7.2b (or 1.2% of GDP) in 2QFY18 from USD3.4b (0.6% of GDP) in the corresponding period last year. This, however, was lower than our estimate of USD8.7b and market consensus of USD8.3b. A surge in the non-oil non-gold trade deficit led to the increase in CAD.
Although financial inflows declined to USD16.4b in 2QFY18 from USD25.8b in 1QFY18, they continued to remain at healthy levels and more than offset the CAD. As a result, India added USD9.5b to forex reserves in 2QFY18.
Total domestic savings (implied from the difference between investments and CAD) declined to 29.3% of GDP in 2QFY18 from 29.9% in 2QFY17.
CAD widened to 1.8% of GDP in 1HFY18 from 0.4% in 1HFY17. Although the CAD is expected to double to 1.4% of GDP in FY18 from 0.7% in FY17, it will continue remaining at comfortable levels.

14/12/2017 4 EN

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Nikhil Gupta

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MOSL: ECOSCOPE-CAD widened to 1.2% of GDP in 2QFY18-However, healthy financial inflows lead to addition of USD9.5b to forex reserves

MOSL : HOME FIRST FINANCE COMPANY: Earnings in-line with sustained improvement in asset quality

MOSL : SHOPPERS STOP: Ticking the right boxes

MOSL : ERIS LIFESCIENCES: Enhanced efforts toward product launch-related activities

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