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MOSL: Morning India (6/March/18): 1. EcoScope; 2. Bulls & Bears; 3. Laurus Labs

MOrning India (6/March/18): 1. EcoScope; 2. Bulls & Bears; 3. Laurus Labs

 

Today’s top research theme

EcoScope: A reasonably decent start to 2018 for the Indian economy

• The Indian economy began 2018 reasonably well, with the monthly economic activity index (EAI) growing 6.3% YoY in January. Although it was slowest growth in three months, a continued surge in investments is highly encouraging.
• Consumption and foreign trade were a drag on January EAI. This, however, was partly offset by investments, which grew at the 79-month highest pace of 16.9% YoY, driven by a favorable base effect in construction, commercial auto sales, diesel sales and cargo freight traffic.
• A double-digit decline in fiscal spending pulled consumption index growth to a three-month slowest level of 5.9% YoY. However, private consumption continued to grow strongly.
• Overall, while fiscal spending is expected to remain subdued in 4QFY18, strong investments and private consumption - partly due to a favorable base - are expected to support EAI. Accordingly, we expect real GDP growth to improve slightly from 7.2% in 3QFY18 to 7.3% in 4QFY18, implying full-year FY18 growth of 6.7%, as against 7.1% in FY17.

Piping hot news

PSBs may be told to take passport details for loans above Rs 50 crore

• The finance ministry may ask state-run lenders to seek the certified passport details of borrowers with an exposure of Rs 50 crore and above to help prevent them fleeing the country in case of default or wrongdoing of any kind, a senior government official said. This comes as the government is expected to table the Fugitive Economic Offenders bill in the ongoing session of parliament. The idea is under deliberation, the official said.