InvestorQ : How will markets react to the GDP numbers and the unemployment numbers when it opens for trading next week?
Arya Nanda made post

How will markets react to the GDP numbers and the unemployment numbers when it opens for trading next week?

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Deepa Salunkhe answered.
2 years ago
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The GDP numbers are obviously not too encouraging. 5.8% growth in the fourth quarter and 6.8% for the full year is lower than what the RBI and the Finance Ministry had anticipated for the full year. Low GDP has implications in terms of growth, jobs and sustaining the growth advantage over China so that is going to impact the sentiments. If you look at the markets on Friday, the sharp fall in the second half of trading was largely on fears that GDP numbers could disappoint. The signals were already there due to weak global growth numbers and the liquidity crisis in India after October last year.

However, you can be fairly confident that this impact on the markets will be more short term than long term. Even the World Bank and IMF are betting on GDP growth bouncing back sharply in the current year and the new government also has the mandate to undertake tough and long term reforms. You should wait for the Union Budget on July 05th.
wherein a lot of such reforms could be laid out in greater detail. In terms of market reaction, there will be some negative reaction next week because apart from GDP and jobs, even the infrastructure numbers and auto numbers have been week. But the focus will soon shift to the expectations from the Union Budget and that is what will actually matter.

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