GDP data indicative of an upturn in cyclical sector: Anish Damania

In a chat with ET Now, Anish Damania, Head-Institutional Equities, IDFC Securities, shares his view on the markets.

ET Now: Let’s address the Q1 GDP data. The Q1 GDP data which came out over the weekend seems to be indicating that Indian economy has finally started expanding.

Anish Damania: Yes, that is true. We have seen growth from across majorly in the manufacturing side which was sluggish so far. So at 4.2 per cent growth, definitely that is some sign. We have seen four months of continuous growth coming in, which means that there is this element of pick up and now it is very difficult to say that whether this will accelerate or not but typically what we have seen is that when growth starts picking up, it tends to move higher. So base is also low and for last two-three years, we have not seen any growth at all and that could mean that this could be the start of that one cyclical upturn. Whether it will sustain or not, we will be able to give a call only after 6 to 12 months but it looks like it is on its way up.