Nomura analysts said the ‘real growth amplified by low deflators’ was also influenced by one-offs, including front-loaded government spending.
For every $10 increase in oil prices, India's inflation rises by about 0.3 per cent. As a result, the current account deficit widens by $12.5 billion, which is equivalent to roughly 43 basis points of GDP, according to Sugandha Sachdeva, Founder of SSWealth Street.
Israel-Iran tensions: India’s macros are unlikely to take a hit as tensions mount between Iran and Israel but a lot depends on how quickly the situation gets resolved
The market had crashed in the opening hour as investors were spooked by a higher US inflation print that had beat the Wall Street anticipation and stoked concerns of tighter monetary policy by the Federal Reserve
Against the intensifying macro uncertainties, geopolitical developments, oil price gyrations, and inflationary pressures at large overseas, growth may well turn out the laggard ahead
According to the global financial services major, the government's decision to abolish old stock of high denomination currency (demonetisation) and issue new notes (remonetisation) could have a mixed impact on the macro economy over a year.
"In Moody's view, over time, the multi-pronged but step-wise approach to reform will foster a stable macroeconomic environment. In particular, the cementing of the monetary policy framework with the objective of maintaining inflation at moderate levels is credit positive.
In the Budget for 2016-17, the government has stuck to the pre-announced fiscal deficit target of 3.5 percent of GDP and this move is likely to have a far-reaching impact on the macro economy, according to the global financial services major.
SBI, Coal India, Axis Bank, L&T and NTPC are top gainers while Bajaj Auto, Hero MotoCorp, Bharti Airtel and Lupin and Gail are top losers in the Sensex.
The Infosys shock of a flat fourth quarter guidance and a cut in current fiscal US dollar revenue growth on Thursday, has prompted many analysts to cut their fiscal 2013 revenue forecasts.
Disappointing news from the macro economy after sources indicated that the government is likely to cut its FY12 GDP growth forecast early next week, reports CNBC-TV18's Aakanksha Sethi.