India's GDP grew at the rate of 4.8 percent in Q4 of FY2012-13 - Microsec

India's Q4 (January-March) FY2012-13 GDP (Gross Domestic Product) growth came in at 4.8 percent YoY, in line with market expectations against a revised 4.7 percent YoY in the previous quarter and 5.1 percent YoY in Q4 of FY2011-12. This slight pickup in growth was led by the Manufacturing, Construction and Financial Services sectors. Overall for the full financial year (FY2012-13), GDP growth stood at a decadal low of 5.0 percent YoY compared to 6.2 percent YoY during FY2011-12. However, there were substantial up-ward revisions within the quarterly numbers, which indicate some form of recovery in growth momentum. In absolute terms, at constant (2004-2005) prices, GDP for Q4 of FY2012-13 increased to INR1,470,782 crore vis-à-vis INR1,403,727 crore during the same quarter of FY2011-12. In current prices, GDP was calculated at 2,548,220 crore against INR2,264,227 crore in Q4 of FY2011-12, showing a growth of 12.5 percent. On the demand side, the situation continues to remain weak. GDP at market prices has slumped to 3.0 percent YoY during Q4 FY2012-13 and averaged 3.2 percent YoY for the full year.

Outlook: We think growth cycle has clearly bottomed out in Q3 of FY2012-13 and a gradual recovery driven more by consumption rather than investment is likely. However, further development on structural reforms is unlikely before the monsoon parliamentary session. So, investment cycle may show some meaningful improvement only towards the second half of this fiscal.

Source : Equity Bulls

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