The Indian economy probably expanded at 7.1 percent for the second quarter (Q2) ended September 2016, if a statement by the government on Monday is any indication. The complete statistical data was due on Wednesday.
"Despite subdued growth in the world economy, India has maintained a GDP growth rate of 7.2 percent in 2014-15, 7.6 percent in 2015-16, and 7.1 percent during April to September of 2016-17," Commerce Minister Nirmala Sitharaman said the Lok Sabha in a written reply, reports IANS.
India, currently the world's fastest-growing economy, grew at 7.1 percent in the first quarter ended June 2016, the slowest in six quarters.
An estimate by DBS Bank put the Q2 growth rate at 7.5 percent.
The information was reported just before stock markets closed for the day. The BSE Sensex ended 33 points higher at 26,350. Top Sensex gainers were Bharti Airtel, Adani Ports and ITC.
"Market traded lower in the early hours of trade as RBI's unexpected move to increase the CRR to 100% on incremental deposits brought banks under pressure. RBI's move is negative for the banks as the additional interest cost will impact the banks' profitability in the medium term. This measure takes away the incremental profitability expected through the yield from parking the excess liquidity into bonds.
RBI's future course of actions in the December policy meet including a possible rate cut will be keenly watched. Market recovered after the morning sell-off supported by value buying in selective midcaps and sectors," Vinod Nair, head of research, Geojit BNP Paribas Financial Services, said in a note.