NIFTY1! The latest GDP numbers came in well above expectations, with India posting 8.2% real GDP growth, up from 7.8% in the previous quarter. That’s the fastest pace in six quarters.Inflation is also at very low levels, which helps support growth but it also raises the question of whether this quarter could mark a short-term top if momentum slows from here.
Going forward, I expect GDP prints to stay slightly above expectations, though I could be wrong. For markets to sustain regular new all-time highs, India would need consistently strong real growth, with double-digit prints acting as a major tailwind but whether we get there is uncertain.
