In a pointer to a slowdown in consumer demand, India's industrial production growth dipped to an 11-month low of 6.4 per cent this September, nearly half the September 2006 figure.
Industrial output in the April-June quarter too contracted by 0.1 per cent this fiscal, according to the official data released on Thursday.
Electricity production registered growth of 6.8 per cent in June, the lowest in the past three months. Mining sector growth was 3.6 per cent.
The dismal factory output growth was on the back of a poor performance by manufacturing, mining and capital goods segments.
Wholesale price inflation rose to a 4-month high of 2.36 per cent in October as prices of food items, especially vegetables, and manufactured goods turned dearer, as per the government data released on Thursday. The wholesale price index (WPI) based inflation was 1.84 per cent in September 2024. It was (-) 0.26 per cent in October, last year.
Stock markets will be driven by domestic inflation data, ongoing quarterly earnings from corporates and global trends this week, analysts said. News flows around the general election would also be tracked by investors, market experts said.
Macroeconomic data announcements, global factors and trading activity of foreign investors would be the key triggers for the domestic stock markets this week, analysts said. Last week, the benchmark indices joined the broader market's party despite a host of negative global cues. In the broader market, the BSE midcap and smallcap gauges hit their all-time highs on Friday.
Wholesale inflation rate eased to 34-month low of (-) 0.92 per cent in April on easing prices of food, fuel and manufactured items. The wholesale price index (WPI) based inflation has been on a declining trend for 11 months in a row and entered the negative zone in April. In June 2020 WPI was at (-) 1.81 per cent.
If the index is unable to sustain above 24,500 levels, technically it can then slip to its 200-DMA placed at 23,365 levels.
Factory output growth, as measured by the index of industrial production, was at 8.1 per cent in December 2010.
The industrial production growth rate has dipped to 0.1 per cent in July, as against 3.7 per cent in the same month last year.
'There's a misconception that all Rs 1 lakh crore will be spent immediately, leading to higher consumption of FMCG goods, travel, and vehicle purchases.' 'While some of this money will go toward consumption, not all of it will.' 'The impact depends on where people deploy their savings.'
Production of eight infrastructure sectors rose at a three-month high of 7.4 per cent in December 2022 against 4.1 per cent in the same month of previous year on a better show by coal, fertiliser, steel, and electricity segments, according to the official data released on Tuesday. Crude oil output, however, contracted by 1.2 per cent in December last year. The production of eight key sectors rose by 5.7 per cent in November 2022.
Manufacturing, which constitutes about 76 per cent of industrial production, grew 2.8 per cent from a year earlier, the statistics office said.
From the 30-share pack, Hindustan Unilever, Tata Motors, Axis Bank, Nestle India, Asian Paints, ITC, Reliance Industries, Mahindra & Mahindra, IndusInd Bank and State Bank of India were among the laggards. Larsen & Toubro, Tata Steel, JSW Steel, HDFC Bank, Adani Ports, Kotak Mahindra Bank, Bharti Airtel and PowerGrid were among the gainers.
Industrial growth in September this year increased to 6.5 per cent over the same month last year, quick estimates of the index of industrial production showed on Wednesday.
Aided by a steady growth of the manufacturing sector, the industrial production grew by 5.3 per cent during the first quarter of the current financial year.
Production of eight infrastructure sectors recorded an almost flat growth rate of 6 per cent in February as against 5.9 per cent in the same month last year, according to official data released on Friday. The growth in February is lowest in the last three months. The output of core sectors had increased by 8.9 per cent in January 2023 and 7 per cent in December 2022.
Portfolio management services (PMS), catering to higher networth individuals (HNIs), are facing tough competition from emerging alternative investment funds (AIFs), evident from their dwindling client base. In May, the number of clients for the industry stood at 125,390, down 20,528 in two months, shows data from the Securities and Exchange Board of India (Sebi). "PMS managers also have a high active ratio, which means their portfolios are quite differently positioned and more actively managed, compared to the benchmark, which is also a highlight for long-term investors.
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.
Power generation grew by 14.6 per cent in November.
Barring coal and fertiliser, all sectors -- crude oil, natural gas, refinery products, steel, cement and electricity -- recorded negative growth in August.
The government on Thursday revised upwards factory output growth rate in April to 2.2 per cent from 2 per cent announced on Wednesday.
Indian economy is on an upswing with industrial production posting its highest growth in a decade at 12.4 per cent
Output of the manufacturing sector, which constitutes over 75 per cent of the index, rose 8.5 per cent in January, compared to 8.1 per cent in the same month last year.
Barring fertiliser, all seven sectors - coal, crude oil, natural gas, refinery products, steel, cement, and electricity - had recorded negative growth in May.
Analysts polled by Reuters had expected output to grow 0.7 per cent annually.
In February 2007, for instance, durables grew at 1.1 per cent compared with 20 per cent for the same period last year.
The wholesale price inflation rose to 1.84 per cent in September as food items, especially vegetables, turned costlier, as per the government data released on Monday. The wholesale price index (WPI)-based inflation was 1.31 per cent in August. It was (-)0.07 per cent in September last year.
Growth in overall factory output, as measured by the Index of Industrial Production.
India's industrial production slowed down to 8.6 per cent in February 2008, compared to 11 per cent a year-ago, but belied apprehensions of a major slowdown after dismal figures for the previous month, giving RBI some headroom to tighten money supply for combating the surging inflation.
Growth in factory output, as measured by the Index of Industrial Production, was higher at 6.7 per cent in February 2011.
IIP growth has been revised upwards to 2.5 per cent in December, from the provisional estimates of 1.8 per cent.
Industrial output grows at meagre rate of one per cent in 2012-13 compared to 2.9 per cent in the previous fiscal.
'To be able to sail through such volatilities, it is prudent to focus on quality.'
For the first eight months, industrial output, as measured by the index of industrial production, rose by 3.9 per cent against 9.2 per cent in the corresponding period of 2007-08.
After contracting for the first time in 15 years in October, industrial production again crashed by two per cent in December against a growth rate of a whopping 8 per cent a year ago despite a stimulus package announced by the government to boost sagging demand.
Despite high headline numbers, the output of one-third of the segments in the manufacturing sector in August stood below even that in the same month in 2011-12, when the new index of industrial production (IIP) series started. This is despite the fact that manufacturing grew 9.3 per cent in the month, driving up IIP growth to a 14-month high of 10.3 per cent. Part of it is due to the devastation of these product categories by lockdowns induced by Covid waves and subdued export conditions, while part of it needs to be assessed further.
In previews of Q2FY25 and beyond, industry analysts are expecting a turnaround for IT services. High teens earnings per share or EPS growth is expected for the next two-three financial years. The hopes are backed by deal wins of above $100 billion as at Q1FY25, up 16.6 per cent year-on-year ( Y-o-Y).
The growth of eight key infrastructure sectors rose to a 14-month high of 12.1 per cent in August 2023 against 4.2 per cent a year ago, mainly due to expansion in production of coal, crude oil, and natural gas, according to the official data released on Friday. The expansion in August is the highest since June 2022, when it was 13.2 per cent. The production of refinery products, steel, cement and electricity also grew in August, the data showed.
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