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Barring Japan, major Asian stock markets have opened the day in green. Stock markets in Indonesia and Taiwan are trading higher by 0.9% and 0.7% respectively. Benchmark indices in Europe and US ended their previous session on a disappointing note. The rupee is trading at 67.20 per US$.
Indian stock markets have opened the day on a firm note. The BSE Sensex is trading higher by 74 points (up 0.3%) and NSE Nifty is trading higher by 23 points (up 0.3%). Both, BSE Mid Cap and BSE Small Cap are trading higher by 0.2% and 0.3% respectively.
The Central Statistics Office (CSO) released the gross domestic product (GDP) numbers for the quarter ending March 2016. If the numbers are to be believed, India's economy grew at 7.9% during the quarter. While for the fiscal year 2016, the economy grew at 7.6% as estimated earlier.
The healthy growth was on the back of improved agriculture performance and growth in consumption. Reportedly, private consumption remained robust at 7.4% in the fiscal year 2016. Moreover, the implementation of the Seventh Pay Commission coupled with projections of good monsoon will further boost consumption.
However, on the negative side the private investment continues to remain subdued. Going forward though, increasing consumption trends could lead to higher capacity utilization, which could encourage private sector to revive its investment plans.
Further, the economic survey has projected the economy to grow within a wide band of 7-7.5% in the fiscal year 2017. Moreover, Mr Arun Jaitley has even expressed hopes of the economy growing over 8%.
While India retains the tag of the fastest growing economy in the world, there is a wide gap between the Index of Industrial Production (IIP) figures and that of GDP. While, IIP registered a growth rate of just 2% in FY16, GDP grew at 7.6%. The wide gap only hints that there might be flaws in the computation of our GDP numbers.
In one the articles we have given a renowned economists view on how the GDP growth number is wrong. Don't miss to read this interesting piece. Click here to access it.
In another news update, Maruti Suzuki India Ltd on Tuesday said that it will resume production at its factories in Manesar and Gurgaon from today.
The company had suspended production at its facilities in the latter half of 29 May. The suspension was because of a fire at its supplier's factory, which disrupted the deliveries of the air-conditioner compressor.
Reportedly, on average, Maruti makes about 5,000 vehicles a day at both plants, which together have an annual capacity of 1.5 million units.
This setback comes at a time when company is witnessing rise in demand of its models. The resultant halt could possibly delay the already longer waiting periods of six months for models such Vitara Brezza and Baleno. The stock is trading higher by 0.6%.
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