GDP growth for 2QFY12 slowed to 6.9% from 7.7% in 1QFY12. Much of the weakness, as expected, was from the industrial sector.
Mining sector underwent a contraction while manufacturing growth plummeted to 2.7% from 7.2% in the last quarter. Services sector growth continued to be relatively robust at 8.7%. Weakness in the investment expenditure was stark, growing at 1.2% in 2QFY12 against 9.6% in 1QFY12, in real terms.
Analysts across the street maintain estimates for FY2012E at 7.1% and FY2013E at 6.9%. So Earnings GROWTH for SENSEX YoY will also be tepid.
