Manufacturing sector, which accounts for two-thirds of the industrial production, recorded a growth of 7.3 per cent in June indicating return of consumer demand in the market.
Growth in overall factory output, as measured by the Index of Industrial Production.
Export growth picked up mainly owing to rising global crude prices, which pushed up processed petroleum exports by nearly 40 per cent, apart from a broad-based improvement in exports of major foreign exchange earners such as engineering goods and gems and jewellery.
'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.
During April-February, industrial output grew at 2.6 per cent compared with a growth of 2.8 per cent in the year-ago period.
The industrial production index, which contracted by 0.4 per cent in October for the first time in 15 years, will continue to show a slowing trend till the end of 2009 with some chance of recovery later, feel economists.
Industrial growth recovered to 7.1 per cent in July from the dismal performance in previous two months of the current fiscal, even though it moderated compared with 8.3 per cent recorded a year ago.
The NSE Nifty settled the day 28.30 points, or 0.27 per cent, lower at 10,554.30.
The NSE Nifty closed lower by 32.15 points, or 0.32 per cent, at 9,984.80.
Among other things, the agenda is likely to focus on increasing private investment, employment generation and giving relief to the farm sector
Investors must exercise caution at the current valuation level. There is always a second time when it comes to investing in stock markets!
D&B sees January IIP to decline by 0.5-1.5 per cent. Last month the factory output, as measured in terms of the index of industrial production, had contracted by 0.6 per cent.
The industrial growth number for the month of December has been revised upward to 2.53 per cent from the provisional number of 1.6 per cent released earlier.
India may end the financial year with a seven per cent GDP growth rate, as the economic deceleration is expected to continue in the third quarter, said Montek Singh Ahluwalia, deputy chairman of the Planning Commission.
Though the ministry is considering 2017-18 as the new base year, no decision has been taken as the committees of experts are awaiting some more data before finalising their opinion.
Stock markets will remain closed on Tuesday
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.
RBI moves will further add to corporate woes. Harsh Mariwala, the president of industry body Ficci, said, "I am afraid that with such a hawkish monetary stand, the investment environment would become even more difficult. Growth and employment targets will certainly not be achieved."
While demand for consumer durables has been growing fast, investors need to be selective as stock valuations have risen even faster.
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.
The Index of Industrial Production (IIP) grew by 10.9 per cent in January this year as against 8.5 per cent in the corresponding month last year.
Loans, cash credits, and overdrafts at the end of December 22, 2017, stood at Rs 81,287.32 billion, against Rs 73,340 billion in the year-ago period.
India's industrial output unexpectedly rose 1.2 per cent in May from a year earlier, led by a pick up in manufacturing, government data showed on Tuesday.
The IIP growth was 0.6 per cent as against 1.7 per cent in April last year.
Technically speaking, US equities have seen net losses since January. India is strongly influenced by US trends.
The government will unveil the Consumer Price Index data and the Wholesale Price Index data for August on Monday.
Historically, there has been no correlation between growth in bank credit to industry and lower benchmark interest rate
There is little doubt that the global economic crisis has worsened Indias growth prospects, but the slowdown began long before the US financial meltdown began.
Subramanian's paper comes at a time when concerns have been raised in various quarters about the official economic growth numbers. The Economic Advisory Council-PM said the Base Year of India's income calculations were shifted to 2011-12 on the basis of recommendations of several committees with experts in national income accounting.
Ajit Mishra will answer Your Questions on the stock markets on a weekly basis. Please mail your questions to getahead@rediff.co.in with the subject line 'Stock Market Query' along with your name and Ajit will offer his unbiased views.
Chidambaram promises to maintain fiscal discipline; admits inflation is an issue.
Jyoti Basu, the 95-year-old communist, has lost touch with many of his comrades. But this morning the former chief minister of West Bengal did not forget to call his favourite Congressman to say, "Happy Birthday!"
The Nifty closed at 5,137, up three points. The market breadth turned weak at close. Out of 2,921 stocks traded on the BSE, there were 1,037 advancing stocks as against 1804 declines.
If government statistics are at variance with private data flow, chances are high that the latter presents a picture closer to reality.
Led by a strong recovery in the manufacturing sector, the industry registered an impressive growth of 7.9% during August 2004 against 5.7% in the same month last year.
According to the official industrial data, industry grew 2.7 per cent in May, more than double the 1.2 per cent in the previous month. During the month, manufacturing sector output rose by 2.5 per cent, while mining and power generation grew 3.7 per cent and 3.3 per cent, respectively.
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.
Key macroeconomic indicators suggest softening industrial growth.
The number of infrastructure projects cleared by a monitoring group set up in the Cabinet Secretariat had increased consistently in the past year.
