India’s economy grew at a slower pace in the last quarter of the financial year (January-March 2024), raising questions about its impact on the stock market. Many experts believe the GDP growth might be below 7%, compared to 8.4% in the previous quarter.
The Q4 GDP growth number is the last piece of the puzzle for the entire financial year’s economic performance. It helps investors and analysts understand the health of the economy and make informed decisions.
Yes, a growth rate below 7% could lead to some initial disappointment in the stock market. Investors might worry about the economy slowing down and potentially impacting company profits.
What do experts say?
While a sub-7% growth might not be ideal, experts urge caution against overreacting. Here are some insights from various experts:
- Focus on the bigger picture: The overall economic growth for the entire year is still expected to be around 8%, which is quite strong compared to the global situation.
- Resilient economy: India’s economy has shown resilience in the past, bouncing back from challenges.
- Positive factors: Factors like infrastructure development, government spending, and digitalization are still driving growth.
What to expect in the stock market?
The market might experience some short-term volatility after the GDP announcement. However, long-term investors should focus on the fundamental strengths of the Indian economy and the potential for future growth.
Overall, a sub-7% Q4 GDP growth might not be a major cause for alarm. The focus should be on the overall economic performance and the positive factors driving long-term growth.