WPI-based inflation falls to 5-month low of 6.16%.
Factory output growth, as measured by the Index of Industrial Production, fell sharply to 1.8 per cent in December 2011, from 8.1 per cent a year ago, mainly on account of contraction in mining, capital goods and poor growth in manufacturing sector.
With sales of cooling products turning out dismal this summer due to unseasonal rains, the stocks of related companies are now off their March highs. Shares of fan and air conditioner makers such as Voltas, Symphony, Orient Electric, Johnson Controls-Hitachi Air Conditioning and Crompton Greaves are down 5-23 per cent since March when the summer season saw a firm onset. In comparison, the BSE Sensex index is up 10 per cent.
The markets may be entering a consolidation phase and are expected to trade sideways for now after a good run in the last few weeks, suggest analysts. In this backdrop, they suggest investors can book profits at the current levels and enter the market again on a decline from a medium-to-long term perspective. Thus far in fiscal 2023-24 (FY24), the S&P BSE Sensex has moved up around 5 per cent to nearly 62,000 levels.
In October, the general index had declined by 4.2 per cent, while its manufacturing component went down by an even more alarming 7.6 per cent.
Finance Minister Pranab Mukherjee on Friday described the industrial output in December as encouraging and said it would have a positive bearing on the economic growth figures for the current fiscal.
The overall market breadth was positive as 1,896 stocks advanced against 902 declining ones, on the BSE.
The positive numbers raises hopes of recovery.
Rupee rises against the dollar for 4th straight session.
In October 2010, the index of industrial production had expanded by 11.29 per cent.
An additional factor spurring the FMP launches is MFs' desire to retain investors as many such offerings are set to mature over the next two months.
Videocon Industries surged 6.3%, Blue Star rose 6% and Titan Industries rallied 3.5% by close of trade on Friday.
In terms of industries, 16 out of 23 industry groups in the manufacturing sector have shown positive growth during December 2017 as compared to the same month year ago.
"Any lingering concern that India's manufacturing recovery was tailing off should be put off. A second consecutive rise in PMI has taken the series to a new cycle high consistent on double digit rise in industrial production," said Robert Prior Wandesforde, senior asian economist, HSBC.
We have not yet internalised the need for reliability in our schema to emerge as an industrial society, says Sonali Ranade
The economic growth slowed to 6.9 per cent in the second quarter against 8.4 per cent in the same period last year.
In a conversation with Business Standard, he talks in detail about the areas he has identified to stop the perceived deterioration in official statistics.
India's manufacturing sector activities witnessed the strongest rate of growth in three months in July amid improved demand conditions and easing of some local COVID-19 restrictions, a monthly survey said on Monday. The seasonally adjusted IHS Markit India Manufacturing Purchasing Managers' Index (PMI) rose from 48.1 in June to 55.3 in July, pointing to the strongest rate of growth in three months. In PMI parlance, a print above 50 means expansion while a score below 50 denotes contraction.
What could be the reason for the successive downward revisions across the board? Some key indicators make it evident, reports Abhishek Waghmare.
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.
The S&P BSE Realty Index has emerged as one of the top-performing sectors, yielding a remarkable 45 per cent return over the past six months. The three leading players, listed by market capitalisation, have substantially enriched investor wealth by 43-70 per cent during this period. If the second quarter (Q2) of 2023-24 (FY24) updates from Macrotech Developers (Lodha) and Sobha, along with industry data for the quarter, serve as any indication, the trend of strong bookings for larger players is expected to continue.
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.
In most circumstances, this would have been the cause for widespread handwringing and lamentation. But in today's India, the response was more one of relief than one of shock.
Cement production contracted by 2.7 per cent as against an expansion of 6.2 per cent in October 2016.
The government hopes of registering GDP growth rate ranging between 6.1-6.7 per cent in 2013-14.
The 30-share barometer dropped by 402.22, or 2.37 per cent to 16,464.75 at 1200 hrs with all sectoral indices trading in the negative zone.
Six core infrastructure industries grew at 4.5 per cent in February against a meagre 1.9 per cent during the corresponding month last year, primarily due to increased output in electricity (7.3 per cent). The core sector had grown by a robust 9.5 per cent in January 2010.
NTPC, Hero MotoCorp and Reliance Industries down 2% each among the top losers
Before growing 2.8 per cent in latest April-September period, IIP had seen negative growth of 0.1 per cent in 2013-14 period.
During April-May, growth in the eight core industries slowed to 3.3 per cent as against 4.9 per cent in the year-ago period.
Rupee, however, added some respite after strengthening for the first time today during the last five trading sessions.
Industrial growth slowed to 3.6 per cent in February, 2011, compared to 15.1 per cent expansion in the year-ago period, dragged down by poor performance of manufacturing and mining sectors.
Brokerages believe that the Bharatiya Janata Party's (BJP's) stronger-than-expected showing in state elections reduces political risks for the domestic markets going into 2024. However, after the short-term excitement, the focus will soon shift to earnings, global liquidity conditions, and the interest rate trajectory. "BJP's win in the three state elections is much better than what exit polls suggested and reinforces the consensus expectations of a Modi win in the 2024 national elections with a greater likelihood of 300+ seats for the BJP.
Faulty Jan data blamed on festival holiday; govt to form review panel
Inflation data and global trends would be the major driving factors for the equity markets this week which after a record-breaking run took a breather in recent trades, analysts said. The overall market sentiment remains positive, supported by improving economic data and earnings but higher valuations can trigger bouts of profit booking, they said further. During the last week, which the 30-share BSE benchmark rose by 175.12 points or 0.30 per cent.
The growth rate in September too was 3.2%.
Industrial output expanded 1.4 per cent in April after two months of decline, leading experts to predict that the economy had bottomed out. A return to 8-plus per cent industrial expansion was, however, some time away, they added.
Natural gas output rose by 6.4 per cent in June.
The eight sectors, which also include fertilisers, steel, natural gas, electricity and crude oil, had expanded by 1 per cent in June last year.
In the next six months it will be subdued.
