Cumulatively, the eight core sectors grew by 4.2 per cent in 2017-18, lowest in the last three financial years.
The Sensex closed down 216 points at 19,782 and the Nifty slipped 62 points at 5,851.
'Both IIP and CPI inflation numbers are showing a huge disconnect from the leading indicators.'
'We expect a pick-up in the second half of the current fiscal. But before that, data is likely to show a further slowdown. The second quarter print is likely to be worse than the first quarter,' said a senior official.
Nifty saw the biggest weekly gain since the first week of September and comfortably maintained its crucial 8250 levels in today's session
The rate of price rise in the vegetable segment almost doubled to 7.47 per cent as against 3.92 per cent in September.
The broader NSE Nifty after shuttling between 10,451.90 and 10,595.75 finally ended 100.30 points, or 0.96 per cent, higher at 10,582.50.
The production of durable products (refrigerators, washing machines, air conditioners and conventional television sets) is contracting in India, according to new data released last week.
Inflation is down, growth is headed for recovery. RIL and subsidiary Jio are on an upswing. However, stressed loans and impending job losses are the dark clouds, says Devangshu Datta.
Manufacturing, which constitutes about 76 per cent of industrial production, grew 2.8 per cent from a year earlier, the statistics office said.
The broader Nifty finished at 10,421.40, up 194.55 points, or 1.90 per cent.
The recent data dims hope of recovery in manufacturing.
Softening inflation, Das said would make available more policy space to the central bank to address risks to the growth going forward.
Markets under pressure; IT financials grab spotlight.
Industrial production expanded a provisional 3.4 per cent year-on-year in June.
'This has become a necessity now to kick start the investment cycle'
Risk appetite improved on the back of a rally in global markets after the US stocks hit a fresh record high on Monday
'Formation of the Cabinet Committee on Investment is very positive news.'
Investors booked profits after sharp gains last week which pushed the Sensex above 20,000 and the Nifty above 6,000.
The NSE Nifty too breached the 11,500-level with a jump of 145.30 points.
The NSE Nifty settled the day 96.80 points, or 0.94 per cent lower, at 10,224.95
The Reserve Bank of India, which mainly factors in retail inflation to decide its monetary policy, has been tasked by the government to ensure the rate of price rise remains around 4 per cent.
Sentiment was largely positive after April IIP grew at 4.9 per cent, spurred by higher growth in manufacturing and mining sectors.
The chambers said that the situation calls for urgent policy measures both by RBI and the government to salvage industry from further decline in industrial output.
According to official data released on Friday, industrial growth has slipped to 0.6 per cent in February this year due to contraction in power generation and mining output and poor performance of manufacturing sector.
The expansion in September is highest since April, when the core sectors' growth stood at 2.6 per cent.
Analysts polled by Reuters had expected output to grow 0.7 per cent annually.
A strong set of industrial output numbers for January provided the perfect backdrop to reap more dividends, with the IIP having expanded 2.7 per cent year-on-year.
Led by a recovery in manufacturing output, industrial production grew by 5.9 per cent in November, 2011, after witnessing a contraction in the previous month, a development that may reverse the negative sentiment amid an economic slowdown.
The number of infrastructure projects cleared by a monitoring group set up in the Cabinet Secretariat had increased consistently in the past year.
The 30-share BSE Sensex opened positive, but shed some ground to settle the session higher by 250.47 points, or 0.78 per cent, at 32,432.69, its biggest closing since August 2.
Growth in overall factory output, as measured by the Index of Industrial Production.
The Economic Survey said that a number of indicators -- GDP, IIP, credit, investment and capacity utilisation, point to a deceleration in real activity since first quarter of 2016-17 and a further deceleration since the third quarter.
On the impact of declining industrial production on economic growth, he said "the growth rate for the current fiscal will be between 5.5 per cent or 6 per cent. Perhaps 5.7 per cent is the likelihood".
Cement production contracted by 2.7 per cent as against an expansion of 6.2 per cent in October 2016.
Eight infrastructure industries have posted a growth rate of 8 per cent for September on account of good performance by crude oil, steel and electricity sectors.
The Sensex ended down 251 points at 27,351 and the Nifty shed 65 points to close at 8,228.
Expressing concerns over slow industrial production growth, industry today asked the Reserve Bank to cut rates in its policy review next month to boost investments and bring the growth back on track.
The BSE benchmark Sensex on Tuesday recovered by over 50 points in early trade, snapping its eight-session losing streak, on fresh buying by funds and retailers ahead of industrial output data, amid a firming trend in other Asian bourses.
A team of scientists at the Indian Institute of Petroleum in Dehra Dun has developed a new technology to convert environmentally-hazardous plastic into petroleum products.
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