Gloom in markets, car sales decline, core sector hit
NEW DELHI, Aug 2: Markets crashed to five-month lows on Thursday; macroeconomic data shows stronger signs of a slowdown; and car sales decline yet again
The Indian economy has been facing a slowdown for more than a year now. An emphatic victory for the BJP in the 2019 elections had generated hopes that the government would reciprocate for the mandate by providing a stimulus to economic growth. Early trends, both in the greenfield and financial sectors, suggest that such optimism is slowly losing momentum.
Stock markets, which had climbed to an all time high after exit polls predicted a BJP victory have crashed by almost 2500 points since the budget. Car sales continue to slide even as core sector growth has plummeted to 0.2% in June 2019
The Sensex shed 463 points, taking the slide since Budget on July 5 to 2,495 points
The index of eight core sector industries grew at 0.2% in the month of June, the lowest monthly growth since May 2015. These numbers also hint at problems beyond the core sector. For example, cement industry shows a decline in June. This means that the construction sector, which is an important source of non-farm employment, could be in trouble.
Carmakers recorded yet another month of fall in sales in July compared to last year
Maruti logged among the largest fall in auto sales, selling 96,478 vehicles in July 2019 as compared to 152,427 in July 2018