October IIP Update

• The IIP figure for October stood at 10.3%, disappointing everybody since the expected figure was hovering around 12%.The same index registered a growth of -0.4% y-o-y in Oct’08 whereas a growth of 9.6% (revised) y-o-y in the last month

• The figure was below the market expectations, leading to a fall of 50.41 points in the Sensex, pulling it down from 17,189.31 to 17,138.90, just after the release of the data. Since the market was expecting a better number, all the gaining sectors lost their momentum and took a back step

• The figure will also help RBI for the interest-rate decision for January. But, the figures are still not bad for they have again hit a double-digit growth for the second time in three months. Acc. To Montek Singh Ahluwalia.the figure is strong enough to indicate that India’s IIP is still in good shape and the trend will continue in future

• The manufacturing sector grew by 11.1% y-o-y compared to -1.2% in Oct’08 y-o-y on account of increased manufacturing activities. This sector has seen a major correction in its numbers. The electricity sector increased to 4.7% from 4.4% in Oct’08 y-o-y. Manufacturing and electricity sectors both grew by 9.3% & 7.9% respectively in Sep’09

• The mining sector, posted a growth of 8.2% against 2.8% in the same month of the last year. It grew by 8.6% in Sep’09 y-o-y respectively. It has been consistently showing good performance since the last 3-4 months

• In the use-based category the basic goods, capital goods and the intermediate goods sector registered a growth of 5.0%, 12.2% and 14.3% y-o-y respectively compared to 2.7%, 3.1% and -3.7% y-o-y respectively in Oct’08. All the three sectors have performed extremely well: especially the capital goods segment which posted negative figures for around 3-4 months starting from March

• The consumer goods sector has grown by a satisfactory 11.8% y-o-y compared to its growth of -2.3% in Oct’08 y-o-y. The sector’s growth got injected by a boost in the consumer durables segment which grew by 21.0% y-o-y, a huge increase from -3.0% in Oct’08 y-o-y. Even the consumer non-durable goods performed stupendously registering a growth of 8.1% compared to a growth of -2.0% in Oct’08. It has been performing meagerly since last 4-5 months, registering low growth figures since last few months and even negative at times

• The IIP figure for October stood at 10.3%, disappointing everybody since the expected figure was hovering around 12%.The same index registered a growth of -0.4% y-o-y in Oct’08 whereas a growth of 9.6% (revised) y-o-y in the last month

• The figure was below the market expectations, leading to a fall of 50.41 points in the Sensex, pulling it down from 17,189.31 to 17,138.90, just after the release of the data. Since the market was expecting a better number, all the gaining sectors lost their momentum and took a back step

• The figure will also help RBI for the interest-rate decision for January. But, the figures are still not bad for they have again hit a double-digit growth for the second time in three months. Acc. To Montek Singh Ahluwalia.the figure is strong enough to indicate that India’s IIP is still in good shape and the trend will continue in future

• The manufacturing sector grew by 11.1% y-o-y compared to -1.2% in Oct’08 y-o-y on account of increased manufacturing activities. This sector has seen a major correction in its numbers. The electricity sector increased to 4.7% from 4.4% in Oct’08 y-o-y. Manufacturing and electricity sectors both grew by 9.3% & 7.9% respectively in Sep’09

• The mining sector, posted a growth of 8.2% against 2.8% in the same month of the last year. It grew by 8.6% in Sep’09 y-o-y respectively. It has been consistently showing good performance since the last 3-4 months

• In the use-based category the basic goods, capital goods and the intermediate goods sector registered a growth of 5.0%, 12.2% and 14.3% y-o-y respectively compared to 2.7%, 3.1% and -3.7% y-o-y respectively in Oct’08. All the three sectors have performed extremely well: especially the capital goods segment which posted negative figures for around 3-4 months starting from March

• The consumer goods sector has grown by a satisfactory 11.8% y-o-y compared to its growth of -2.3% in Oct’08 y-o-y. The sector’s growth got injected by a boost in the consumer durables segment which grew by 21.0% y-o-y, a huge increase from -3.0% in Oct’08 y-o-y. Even the consumer non-durable goods performed stupendously registering a growth of 8.1% compared to a growth of -2.0% in Oct’08. It has been performing meagerly since last 4-5 months, registering low growth figures since last few months and even negative at times