Q3 GDP Estimates surprise the street on the upside: Angel Broking

"The Q3 GDP estimates announced by the MOSPI on 28th February came in much better than expected at 7%. There were already indications in the macro and micro numbers that the negative effect of demonetization was not as bad as was originally made out to be. The real GDP estimate at 7% in Q3 is largely comparable to the previous two quarters. In Q1 and Q2, the GDP growth was at 7.2% and 7.4% respective. Thus, despite the impact of demonetization, the impact in Q3 was nowhere close to the bleak picture that was painted in the international and national media. What it could also imply is that the remonetization exercise that has gained momentum in Q4 could have a sharply positive impact on GDP in the fourth quarter. With the annualized GDP growth for the first 9 months at 7.1%, it leaves substantial room for the full-year GDP to get closer to the 7.3-7.4% range if the salutary effects of remonetization begin to manifest in the fourth quarter."

Source : Equity Bulls

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