NEW DELHI: Domestic equity market ended higher for the second week straight, however, the dismal GDP print, which came on Friday might play some spoilsport going ahead.

While some analysts and economists say this was along the expected lines and growth has bottomed out, others don’t necessarily agree.

“The stock market has been trending lower in the last couple of trading sessions in anticipation of poor numbers. While there may be a mild negative reaction on Monday, it will not change the medium term trajectory for equities. For FY20, our real GDP forecast stands at 5.2 per cent, with risks to further downside. After 135 basis rate cut delivered by RBI since February, we expect the central bank to cut rates by an additional 25 bps in December, taking the repo rate to 4.90 per cent. Going forward, we believe fiscal policy will need to play a dominant role in supporting overall growth. The government may choose to mildly deviate from its fiscal deficit target for this year as well as next fiscal,” said Amar Ambani, Senior President & Research Head, YES Securities.

Sandip Sabharwal of asksandipsabharwal.com called the economy to be in deep freeze following poor core sector data.

He also made a case for RBI to not cut the rates, saying with the inflationary pressure still high, the central bank should keep its powder dry for cuts in the future.

Shankar Sharma shares Sabharwal’s views that Indian GDP is down in the dumps.

Talking about what could revive economic growth, Nilesh Shah, MD, Kotak AMC shared his two cents.

However, value investor Safir Anand was hopeful of an economic revival.

Moving to market…
Like his views on economy, Sabharwal is not confident of a market rally either and asked investors to be cautious. Here’s why:

But, PMS fund manager Basant Maheshwari had the opposite view. He believes the market rally will go on for long.

https://twitter.com/BMTheEquityDesk/status/1199579768217206784

And lastly, YES Bank…


Sabharwal looks unimpressed with the lenders’ suitors!

Source

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