January IIP Numbers

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Today India posted its IIP (Index of Industrial Production)Data for the month of January, compiled by CSO (Cental Statistical Organization). It was at 16.70% Vs 1.00% (Year on Year Basis) & 17.60% (Month on Month Basis). The IIP Data were somewhat in line with the Market Expectations. On YoY Basis, it was bound to be positive. At the same time, it has declined on MoM Basis, which is not at all a good indication.

With these good IIP Numbers, another hint comes from RBI is of raising of interest rates, which is expected due to growing inflation and better Industrial Production Growth numbers. The main reason for today's sudden dip in Infra & Realty stocks (DLF, HDIL, UNITECH, IVRCLINFRA, IBREALEST, PUNJLLOYD) was the same fear.

January IIP Internals are as follows:

Apr-Jan Quarter Industrial Growth at 9.60% Vs 3.30 % (YoY)
Manufacturing Sector Growth at 17.90% Vs 1.00% (YoY)
Mining Sector growth at 14.60% Vs 0.70% (YoY)
Electricity Sector Growth at 5.60% Vs 1.80% (YoY)
Basic Goods Sector Growth at 10.70% Vs -0.70% (YoY)
Capital Goods Sector Growth at 56.20 % Vs 15.90 % (YoY)
Intermediate Goods Sector Growth at 21.30% Vs -7.20% (YoY)
Consumer Durable Goods Growth art 4.20% Vs 3.60% (YoY)

Finance Minister, Mr. Pranab Mukherjee says, "For the two consecutive months, there has been a high growth. Perhaps it indicates that the manufacturing sector is going to make its substantial contribution to growth and it(growth) is on the path of fast recovery".

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