India’s Leading Full-Service Broking Firm

Industrial production grows at 11.9% in Aug

Indian industrial production (IIP) grew by grew by 11.9% in Aug (v/s 11.5% in Jul) despite softened of favourable base effects. Strong support to index came from mining and electricity sectors driven by the positive impact of a subdued rainfall while manufacturing growth moderated. Mining grew by 23.6% in Aug v/s 19.5% in Jul and electricity at 16.0% in Aug v/s 11.1% in Jul. Meanwhile, on MoM basis, IIP index modestly declined -0.2% in Sep. Manufacturing, which represents 77.6% in index, grew by 9.7% in Aug (10.5% in Jul) and 20 out of 23 industry group witnessed positive growth during the reported month. On use-based category, consumer durables grew by 8% in Aug (19.4% in Jul) and non-durables at 5.2% in Aug (-2.1% in Jul). Infrastructure grew by 11.1% in Aug (11.7% in Jul) and capital goods at 19.9% (30.5% in Jul). During Apr-Aug FY22, industrial production grew by 28.6% as compared to -25% contraction in the same period of previous fiscal.

Inflation eases to 4.4% in Sep

CPI inflation eased to 5-month low at 4.4% in Sep (5.3% in Aug) on the back of sharp decline in food inflation and favourable base effect (inflation at 7.3% in Sep’2020). CFPI declined to 0.7% in the month of Sep (3.1% in Aug) due to deflation in vegetables for 10th consecutive month, cereals & and sharp reduction in fruit inflation. Vegetables prices declined by -22.5% in Aug (-11.7% in Jul), cereals at -0.6% (-1.4% in Jul) and fruits at 3.7% (6.7% in Jul). Inflation in pulses moderated modestly to 8.75% in Sep (8.81% in Aug) and protein items at 8.0% in Sep (9.2% in Aug). Fuel & power inflation was in double digit for the fifth straight month rising to 13.6% in Sep v/s 13.0% in Aug. Core inflation picked up to 5.8% due to high commodity prices.