The Indian economy which was the rising star in a global economy that has experienced stagnance over the recent past appears to be in the middle of a slowdown.
Markets in Red
After a sluggish second quarter or Q2 FY25, the recent reports on FY25’s estimated growth figure of 6.4 per cent. The markets appear to have not welcomed this piece of underwhelming information. The marquee indices, Sensex and Nifty trade with deep cuts on Wednesday, January 8.
The BSE Sensex dipped to 77,974.47, dropping to 224.64 points or 0.29 per cent. Developments at the National Stock Exchange were no different, as the benchmark index dropped by 65.15 points or 0.27 per cent, taking the overall value to 23,642.75.
The Nifty Bank index also dropped significantly on Wednesday. The banking index slumped below the 50,000 mark. At the time of writing, th decline stood at 474.90 points or 0.95 per cent, taking the overall value of Nifty Bank to 49,727.25.
It needs to be noted, that the indices were trading with much deeper cuts in the earlier hours of trade. The aforementioned figures came to pass after some recovery at Dalal Street.
When we look at the gainers and losers, Reliance was one of the biggest gainer with gains of over 2 per cent. It also had the company of Asian Paints, TCS and ITC.
Meanwhile, the Zomato was a major loser with a dip of 2 per cent. Adani Ports, Ultra Tech and NTPC were also amongst the losers.
India’s Declining Growth Rate
When we look at the data set released by the National Statistics Office (NSO), the Indian economy is set to end the FY25 with a growth rate of 6.4 per cent far below estimates of the government and the RBI. This would also mark the lowest growth rate attained in nearly four years.
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This figure is even lower than the RBI estimates of 6.6 per cent, which themselves were recalibarted after a slow growth of 5.4 per cent in Q2. The central bank brought its estimates down from 7 per cent to 6.6 per cent.
