Why it is too early to get excited about the recently released quarterly economic growth data and why stock markets will be keenly watching Gujarat elections.
Edited Highlights
1:42 GDP number of 6.3% just released, reflect higher growth after five consecutive quarters of decline, up from 5.75% in the last quarter
1:58 While everyone is talking about economy growing well but let's not forget the fact that a lot of re-stocking happened just prior to implementation of GST
2:10 Therefore, manufacturing did come to a little bit of slowdown and in this quarter, a lot of re-stocking had taken place
2:17 So, taking these numbers in face value doesn't make sense
2:22 Secondly, the gross capital formation has in fact declined in this quarter which is not a happy thing to happen
2:37 The other thing is that there is a lot of discussion that the government is going to tax unsold real estate inventories
2:44 Whatever is lying unsold for more than a year will be taxed at some rate
2:54 It is a very bold move if it comes about
3:14 This also means that real estate developers will have to quickly sell their inventory which they are holding. This may make the real estate prices come down
3:22 This means their focus will be on selling existing inventories and not on building new things
3:53 This means that the project will slow down and with it ,demand for items such as cement and steel
5:18 Gujarat elections are round the corner. Investors will keep a close watch on them
5:45 Should there be any doubt in the prospects of the government getting re-elected, the stock markets will react to it
