Motilal Oswal - MOSL: ECOSCOPE: Economic activity fades further in August 2017; Broad-based weakness in consumption drags EAI

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Motilal Oswal

Nikhil Gupta

MOSL: ECOSCOPE: Economic activity fades further in August 2017; Broad-based weakness in consumption drags EAI

â€‹ECOSCOPE: Economic activity fades further in August 2017; Broad-based weakness in consumption drags EAI

Indiaâ€™s monthly economic activity index (EAI) grew 2.7% YoY in August 2017, slipping from 4.4% in July 2017. EAI growth averaged 3.5% YoY in July-August 2017, same as in 1QFY18.
A broad-based deterioration in consumption demand, which grew only ~4% in August, offset the improvement in investment demand, which grew at a 14-month high of 4.8%. Higher investments were majorly driven by an expected improvement in IIP for capital goods and 15-month highest growth in industrial auto sales and electricity generation.
Though July-August 2017 data do not suggest a significant pick-up in 2QFY18, we believe GDP growth has bottomed in 1QFY18. With the festive season beginning early this year (Diwali in mid-October rather than early November normally), the economy should witness a pick-up in September. We expect real GDP to grow 6-6.5% YoY in 2QFY18.

06/10/2017 8 EN

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Motilal Oswal

Motilal Oswal Financial Services Ltd. is a reputed name in Financial Services and Online Trading with group companies providing services such as Private Wealth Management, Retail Broking and Distribution, Institutional Broking, Asset Management, Investment Banking, Private Equity, Commodity Broking, Currency Broking, Principal Strategies & Home Finance.

Motilal Oswal Securities is a group company of Motilal Oswal Financial Service Limited which started as a stock trading company and has blossomed into well diversified firm offering a range of financial products and services. Motilal Oswal has built a reputation as the source for best stock trading company and this has taken a wealth of experience, knowledge and expertise, constantly working in tandem, over the years.

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Analysts

Nikhil Gupta

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MOSL: ECOSCOPE: Economic activity fades further in August 2017; Broad-based weakness in consumption drags EAI

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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