Consumer durables shrank year on year, which could suggest to observers that spending confidence is yet to return to the economy.
Sluggish infrastructure sector growth would also have impact on IIP as these segments account for about 41 per cent of the total factory output.
At 89th, India is the lowest-ranked among the BRICS.
The factory output, as measured by the Index of Industrial Production, soared to 16-month high of 8.2 per cent in October on good performance of the manufacturing, power sector and higher output of capital as well as consumer goods, indicating sudden recovery in the economy.
BSE market breadth was negative. Out of 2,961 shares traded, 1,907 shares declined while 941 shares advanced.
The number of infrastructure projects cleared by a monitoring group set up in the Cabinet Secretariat had increased consistently in the past year.
The overall breadth was positive as 1,712 stocks advanced while 1,100 stocks declined.
Buying and selling of exchange trade fund (ETF) units worth less than Rs 25 crore will now have to take place compulsorily on the stock exchange platform, according to a new rule which comes into effect on Tuesday. The fresh norm, which comes into being after two deferments, is aimed at boosting liquidity and reducing tracking error. At present, investors directly deal with the asset management companies (AMCs) for purchase and redemption of ETFs - passive schemes that track a particular benchmark such as the Nifty50 index.
The output of eight core industries increased 4.2 per cent in April, boosted by higher electricity, fertiliser and cement production.
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.
Growth in six core infrastructure industries, which have a combined weight of 26.7 per cent in the Index of Industrial Production
Buoyed by the upbeat performance of the manufacturing sector, including metals, Centre for Monitoring Indian
Key Planning Commission official says push from small-scale industries will help reach the figure, but others disagree.
In December, the index fell a provisional 0.73 per cent.
While demand for consumer durables has been growing fast, investors need to be selective as stock valuations have risen even faster.
rediffGURU Ramalingam Kalirajan answers your personal finance queries.
Terming the slowdown in May industrial output as "not encouraging", Finance Minister Pranab Mukherjee on Tuesday said the government was in the process of taking steps to enhance the productivity of the manufacturing sector.
Morgan Stanley has increased the target prices of certain information technology (IT) stocks by as much as 29 per cent, anticipating an improvement in earnings in the near future. Within the IT and engineering research and development (ER&D) services sector, it is now more optimistic about growth and margin estimates for 2024-25 (FY25).
Propelled by a strong growth in manufacturing, the industrial production grew by 6.4 per cent in January over the same period of the previous year.
Sources in the military establishment also said the present global scenario "necessitates a flexible and adaptive approach" to tackle defence and national security challenges.
It may be a little early to cheer the recovery in the fast-moving consumer goods (FMCG) space as a deceleration in discretionary demand, after the festival season, may offset fragile rural recovery, analysts have cautioned. "The overall demand environment for staples remains muted, while discretionary demand trends have seen some deceleration after the festival season. "We believe margins in staples have bottomed out, but we expect only a gradual uptick with the ongoing softening in raw material prices.
Industrial production re-entered the negative territory by contracting 1.6 per cent in January, mainly on account of the decline in output of capital goods, manufacturing and mining sectors. The output of the manufacturing sector -- which constitutes 77.6 per cent of the Index of Industrial Production (IIP) -- shrank by 2 per cent in January, as against a growth of 1.8 per cent during the same month last fiscal, as per data released by the government on Friday. The worst performance was witnessed by the capital goods sector, which recorded a contraction of 9.6 per cent during the month under review, compared to a 4.4 per cent decline a year ago.
India Inc's India's Business Confidence Index has gone up by 5.4%.
The IIP growth number of 5.6 per cent in May 2011 over May last year is the lowest in nine months. A downward trend in IIP has been seen since December 2010, with brief interludes of good news.
Among the Sensex firms, Bajaj Finserv, Tata Motors, Asian Paints, ITC, IndusInd Bank, State Bank of India, Tata Steel, Wipro, Infosys and Maruti were the major gainers. Tech Mahindra, HCL Technologies, Kotak Mahindra Bank, Titan and Larsen & Toubro were the major laggards.
BSE benchmark Sensex plummeted over 388 points to close at 58,576.37 on Tuesday, tracking weakness in index majors Wipro, RIL and Bharti Airtel amid a weak trend in global markets. Investors also remained cautious ahead of crucial macroeconomic data announcements -- industrial production for February and inflation rate for March -- post trading hours. The Sensex declined 388.20 points or 0.66 per cent to settle at 58,576.37. During the day, the benchmark tanked 666 points or 1.12 per cent to 58,298.57.
Almost 53 per cent of the companies covered by the survey felt that high cost of credit was creating a problem for India Inc.
Manufacturing sector pushes IIP up 3.7% in Nov
The eight core industries -- fertilisers, cement, steel, electricity, crude oil, coal, petroleum refinery products and natural gas -- have a combined weight of about 38 per cent in the Index of Industrial Production.
Driven by high growth in the manufacturing sector, the industrial production recorded a high 7.4 per cent growth in November 2003, compared to a mere 4.1 per cent in the same period previous year.
India's infrastructure industries grew by a faster 8.7 per cent in February 2008, lending hopes of a revival in industrial production growth and in turn a higher rate of economic expansion.
Looking at specific industries, the imbalance that has been visible over the past several months persists.
During the month, inflation in vegetables shot up to 35.99 per cent, as against 26.10 per cent in October. Likewise, the prices of cereals and eggs grew at a faster pace of 3.71 per cent.
Manufactured goods, which have around 80 per cent weight in the index of industrial production, which measures industrial growth, grew by 12.7 per cent in November 2009 compared to 2.7 per cent in the same month a year ago.
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.
Apparel exports to Japan are expected to grow by 20-25 per cent year on year from the current $220 million on account of rising opportunities for domestic exports, AEPC said on Saturday. Apparel Export Promotion Council (AEPC) said that rising opportunities due to changing geopolitical landscape, government supports like production linked incentive, mega park scheme, improving the quality standard, getting sustainable and utilising benefits of free trade agreements with major markets are the key growth drivers. To promote exports to Japan, the council is organising a two-day show in Gurugram.
Factory output, as measured by the Index of Industrial Production, contracted in March to a five-year low of 3.5 per cent.
He is, however, hopeful that impact of recent reforms initiatives will manifest in the data for the second half of the fiscal.
A slowdown in hiring by India's top IT companies has resulted in a sharp increase in the industry's profit per employee in Q3FY23. The top four IT companies earned a net profit of 1.7 lakh per employee during October-December 2022, up 8.6 per cent from Rs 1.57 lakh in Q2FY23 and 16.3 per cent from a record low of Rs 1.47 lakh in Q1FY23. Earnings per employee in the third quarter were, however, still down 0.9 per cent on a year-on-year (YoY) basis.
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