Motilal Oswal - MOSL: ECOSCOPE-Favorable base and festive season offset weak fiscal spending in September 2017-Expect real GDP growth to pick up to ~6.5%

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Motilal Oswal

Nikhil Gupta

MOSL: ECOSCOPE-Favorable base and festive season offset weak fiscal spending in September 2017-Expect real GDP growth to pick up to ~6.5%

ECOSCOPE: Favorable base and festive season offset weak fiscal spending in September 2017; Expect real GDP growth to pick up to ~6.5% in 2QFY18

India's monthly economic activity index (EAI) grew 8.2% YoY in September 2017, similar to the growth seen in the last festive season in October 2016 and up from 2.8% in August 2017. Better growth was supported by favorable base (up 5.3% in September 2016) and festive season, which more than offset the weak fiscal spending in September 2017.
While the acceleration was broad-based, narrower trade deficit provided the highest delta. Consumption growth picked up from 4% in August to 6.4%, while double-digit growth in industrial auto sales, diesel and (expected in) IIP for capital goods boosted investments demand, which grew at a 19-month high of 8.2%.
An expected pick-up in September 2017 helped EAI to grow ~5% YoY in 2QFY18, better than 3.6% in 1QFY18 but still lower than ~6% in 3QFY17. We expect real GDP to grow ~6.5% YoY in 2QFY18.

02/11/2017 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-Favorable base and festive season offset weak fiscal spending in September 2017-Expect real GDP growth to pick up to ~6.5%

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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