Motilal Oswal - MOSL: ECOSCOPE - Strong all-round economic recovery in November 2017-3QFY18 GDP growth projections face upside potential

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Motilal Oswal

Nikhil Gupta

MOSL: ECOSCOPE - Strong all-round economic recovery in November 2017-3QFY18 GDP growth projections face upside potential

â€‹MOSL: ECOSCOPE - Strong all-round economic recovery in November 2017-3QFY18 GDP growth projections face upside potential

India's monthly economic activity index (EAI) grew at a strong 10% YoY in November 2017, marking the highest growth in 17 months. Favorable base and very high growth in fiscal spending supported the acceleration in November.

While the acceleration was broad-based, a 21-month high growth of 9.5% in investments - driven by construction activities, commercial auto sales and first growth in industrial credit in 14 months - is encouraging. Strong growth in exports also added to EAI growth in November 2017.

Further, the consumption index also grew at 8% YoY in November 2017, driven primarily by very high growth of ~44% in fiscal spending. Private consumption was relatively subdued.

Overall, while we expect EAI growth to moderate in December, better-than-expected growth in November imparts an upside potential to our 3QFY18 projection of 6.1% real GDP growth.

03/01/2018 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 - Strong all-round economic recovery in November 2017-3QFY18 GDP growth projections face upside potential

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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