Sensex Ends 97 Points Lower; Realty & Telecom Stocks Witness Selling

As per the World Bank's estimates, current account deficit is expected to widen to 2.6% of GDP while the inflation is projected to rise somewhat above the midpoint of the Reserve Bank of India's (RBI) target range of 2-6%, mainly owing to energy and food prices.

It states the domestic demand in India is improving owing to structural reforms undertaken by the country recently and a revival in credit growth.

While investment continued to strengthen amid GST harmonization and a rebound of credit growth, consumption remained the major contributor to growth.

How these projections unfold remains to be seen. Meanwhile, we will keep you updated on all the developments from this space.

Also, speaking of credit growth in India, note that the credit growth that banks in India posted in December quarter of 2018, at 15.1% YoY, is not just very healthy. It's nearly 2 times GDP growth.

But it also back to the five-year high. This is evident in the chart below:

Credit Growth Back to 5 Year High

 

What does this mean for the Indian economy? Here's what Tanushree wrote about it in one of the recent editions of The 5 Minute WrapUp...

  • Strong credit disbursal is clearly a sign of many things to come. Higher consumption demand, better capacity utilization, more capex, and higher profits.

    So even as we await a sharper earnings recovery, the first signs of it are already evident.

In the news from the IT sectorTCS share price was in focus today as the India's largest IT services company said it has appointed Daniel Hughes Callahan as an Additional and Independent Director.

The company in a statement announced that Callahan has been appointed as an Additional and Independent Director for a period of five years with effect from January 10, 2019.

The stock was also in focus as the company yesterday reported a 24.1% rise in YoY profit at Rs 81.1 billion for the December quarter.

The IT major had reported Rs 65.3 billion profit in the same quarter last year.

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