Poor performance of coal, petroleum refinery products and natural gas pulled down the core sector growth to 2.1 per cent in December, 2013 from 7.5 per cent in the same month a year ago.
Categories such as washing machines, refrigerators and television sets have seen sales growth of around 8-10 per cent in August compared to last year, industry sources said, with September also reporting a similar growth trajectory.
Consumer durables shrank year on year, which could suggest to observers that spending confidence is yet to return to the economy.
India's gross domestic product growth, which had fallen under 5 per cent, is expected to be between 5.4 per cent and 5.9 per cent this fiscal.
Much of the Q3 data will simply not be available for the CSO to factor in its calculation.
Department of Economic Affairs secretary Atanu Chakraborty said that equity capital flows have been positive this year.
The Sensex closed down 216 points at 19,782 and the Nifty slipped 62 points at 5,851.
The eight sectors, which also include fertilisers, steel, natural gas, electricity and crude oil, had expanded by 1 per cent in June last year.
'Both IIP and CPI inflation numbers are showing a huge disconnect from the leading indicators.'
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.
Natural gas output rose by 6.4 per cent in June.
Manufacturing, which constitutes about 76 per cent of industrial production, grew 2.8 per cent from a year earlier, the statistics office said.
Notable losers were ONGC, Axis Bank, ITC, SBI, ICICI Bank, NTPC, Hero Motocorp, Sun Pharma and Bharti Airtel who fell by up to 2.80 per cent.
Top losers include Hero MotoCorp, HDFC, SBI, Infosys, HCL Tech, ICICI Bank, Bajaj Finance, ONGC, Bajaj Auto and IndusInd Bank, falling up to 2.63 per cent.
'Let's not get carried away by stocks like D-Mart, Jubilant Foods and all those companies that are trading at an expensive valuations.'
The recent data dims hope of recovery in manufacturing.
Nifty saw the biggest weekly gain since the first week of September and comfortably maintained its crucial 8250 levels in today's session
India's GDP estimates for 2020-21 show that the economy is expected to perform much better than earlier projections by different agencies, indicating a sustained V-shape post-lockdown recovery, experts said. The first Advance Estimates (AE) by the National Statistics Office (NSO) has projected a contraction of 7.7 per cent in the real GDP during 2020-21. This was better than the projections by certain international agencies like the IMF and World Bank.
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'
'Retail investors have been selling since the Budget and Foreign Portfolio Investors started selling.' 'Thus far, domestic institutions have picked up the slack, buying enough to keep the major indices from falling off a cliff.' 'However, there has been carnage in smaller stocks and the financial sector has been hit much harder than the major market indices,' points out Devangshu Datta.
Markets under pressure; IT financials grab spotlight.
'Formation of the Cabinet Committee on Investment is very positive news.'
The growth in key sectors will have implications for the Index of Industrial Production as these eight segments account for about 41 per cent of the total factory output.
Investors booked profits after sharp gains last week which pushed the Sensex above 20,000 and the Nifty above 6,000.
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.
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.
Cumulatively, the eight core sectors grew by 4.2 per cent in 2017-18, lowest in the last three financial years.
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.
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.
Analysts polled by Reuters had expected output to grow 0.7 per cent annually.
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 number of infrastructure projects cleared by a monitoring group set up in the Cabinet Secretariat had increased consistently in the past year.
Growth in overall factory output, as measured by the Index of Industrial Production.
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.
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".
The broader Nifty finished at 10,421.40, up 194.55 points, or 1.90 per cent.
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.
Risk appetite improved on the back of a rally in global markets after the US stocks hit a fresh record high on Monday
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.
