Economy - Lower investment puts growth off-track - Emkay Global

- Q2 GDP growth at 6.9% yoy, largely in-line with expectations. However, ex-revision for GDP estimates of Sept-10, growth at 6.4% yoy was dismal

- Activity-wise: Services sector grew 9.3% yoy led by growth in trade (9.9%) and financial services (10.5%). Growth in agriculture / industry came in at 3.2% yoy each

- Expenditure-wise: Mere 6% yoy growth in PFCE (5.3% adj for revision) and sedate 1.2% yoy growth in GCF - key –ve. GFCF @ -0.2% yoy first decline since Dec-08

- Recent deprecation in INR, liquidity pressures and slower M1 growth increase the probability of a CRR cut sooner rather than later.

Source : Equity Bulls

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