High Disposable Incomes Driving Consumption in India
Per capita income & discretionary spending in India are expected to grow steadily
IMF forecasts 7.3% growth in 2018
Last week, the International Monetary Fund forecasted a growth rate of 7.3% for India in the current year of 2018 and that of 7.4% in 2019. According to the world body, the acceleration is due to strengthening investments and robust private consumption.
Read more about what a Deloitte and FICCI report says about rising incomes.
You can benefit from the growing consumption trend by buying The Great Indian Middle Class smallcase. The smallcase consists of consumer companies expected to benefit from India’s growing middle class. It has gained 10.46% over the previous year compared to Nifty return of 2.36%.
Steel demand at high levels
According to a report by Crisil, elevated pellet prices and growth in domestic demand have led to a rise in prices of iron ore in India. According to a government report, finished steel demand rose by 6.8% in the September quarter, compared to year ago. During both August and September, steel demand was seen at higher levels. Demand during the April-September period grew by 7.8% compared to 4.3% a year ago. A Macquarie Research report stated that domestic steel prices are trading at a discount of 6–7% to the landed import price, leaving room for price hikes in the near future.
Bloomberg has said that ferrous companies will post strong September quarter numbers. Read more here.
You can gain exposure to the metal sector stocks by buying the smallcase Metal Tracker.
