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00:00Then to some macro data, India's core sectors expanded at the fastest pace in over a year.
00:05It's in fact at its highest level in 15 months.
00:08For the month of August, core sectors grew at 6.2% annually compared to 3.7% in July.
00:15Now all the 8 sectors comprising steel, coal, cement, fertilizers, natural gas, petroleum,
00:21refinery products, crude oil and also electricity, they expanded.
00:25Now the growth was led by steel, cement and coal.
00:28The steel sector grew the most at 14.2% year-on-year,
00:32while crude oil and natural gas were the only sectors to underperform.
00:37And we also spoke to top market experts at JPMorgan and India's growth outlook going forward.
00:43Let's go across and listen in to understand their view on the key headwinds and tailwinds impacting the Indian economy.
00:50Global equities have gone up. Our valuations do not look as bad as they did.
00:55And more important is if you now split it into sectors, right?
00:59Let's take the financials cohort.
01:01Our banks, even in a slowing economy, will still deliver a certain degree of earnings growth
01:05with a high degree of confidence for the next three years.
01:08Shorter-term returns are made on earnings surprises, not growth.
01:11We've done a lot of quant work on this.
01:13And if you're an investor for 12 months or less, you are looking for companies that are going to beat expectations of growth.
01:20Right now, that appears difficult as well because, yes, things have gotten the right size of the forecast,
01:28but do I have enough momentum for a large set of companies to surprise your earnings?
01:32I don't see that yet.
01:33India has been running on essentially two engines of growth, which are services exports built up by the global capability centers and infrastructure.
01:44Corporate investment as a share of GDP has been flatlining since 2012 at 12%.
01:52We need to really actually find alternative engines of growth.
01:58And the corporate sector is, you know, flatlining at 12% because there are no alternative.
02:03We haven't identified alternative sources of growth.
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