Moneycontrol
Last Updated : Nov 21, 2016 03:23 PM IST | Source: Moneycontrol.com

Demonetisation: Brokerage firms cut GDP growth estimates for FY17, FY18

As per a Business Standard article, Ambit sees a significant decline in GDP growth in the second half of the current fiscal and sees it decelerating from 6.4 percent in the first half 0.5 percent year-on-year (YoY) in H2FY17.


Ambit Capital has said that demonetisation will paralyze economic activity in the short term and has cut its FY17 gross domestic product (GDP) estimate to 3.8 percent from 6.8 percent.


As per a Business Standard article, Ambit sees a significant decline in GDP growth in the second half of the current fiscal and sees it decelerating from 6.4 percent in the first half 0.5 percent year-on-year (YoY) in H2FY17.


Ambit had earlier cut its FY18 GDP growth forecast to 5.8 percent against 7.3 percent previously, before the cash ban. The FY17 Sensex target of 29,500 has also been scrapped and has set its FY18 Sensex target at 29,000 given that earnings growth stays at a minimum of 10 percent.

Citi India has also slashed its FY17 GDP estimate and expects it to come down to 7.2 percent against 7.7 percent earlier.

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Consumer led recovery in the second half of the current fiscal, especially rural demand looks less likely to materialize now, the firm said.

Citi expects a modest GDP recovery to 7.4 percent in FY18 on the back of stimulus from different policy realisation.

First Published on Nov 21, 2016 09:26 am
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