Indian Gross Domestic Product declined at a much higher pace than what markets were expecting. This could result in correction in equities as markets were expecting much lower decline in GDP numbers. However, the numbers announced today suggest that recovery could take much longer.

Comments on Indian GDP Data by Abhimanyu Sofat, Head of Research, IIFL Securities follow...

The GDP contraction numbers are much worse than expected and clearly shows the economic recovery expectations are slower than believed. However the impact on markets may not be long-term as this is a hindsight view. Further fiscal and liquidity stimulus may be expected.

Indian markets declined today after opening strong due to border tensions with China. However, the GDP data could lead to further decline in Indian markets this week.