BY: Manish Chowdhury, Head of Research, StoxBox
The Indian economy grew more-than-expected by 7.8% annually in the fourth quarter of FY24, much ahead of market expectations of a 6.7% growth. The growth momentum in the economy which grew 8.2% in FY24 can be attributed to the strong performance of the manufacturing and mining sectors due to the quality of capex spending in targeted areas and sustained domestic demand. With various high-frequency indicators indicating the sustenance of this growth in the current quarter as well, we believe that the initial groundwork is laid for beating market estimates and an upward revision to forecasts as we move ahead. We are of the view that the capex spending, which has moderated due to elections, would pick-up steam in future, thereby providing further fillip to the growth momentum.