IIP Update - October 2012 - Growth in industrial production surprises positively - Angel Broking

Key highlights

- As per Quick Estimates on the Index of Industrial Production (IIP), industrial growth at 8.2% during October 2012 (as against 5.1% yoy expected growth) surprised positively.

- Growth is largely attributed to an exceptionally low base effect coupled with ramping up of production in anticipation of festival-related demand and an improvement in the core sector output.

- Owing to the healthy growth in October 2012, the index has witnessed some traction on a cumulative basis with 1.2% yoy growth in the April - October 2012 period.

- On a sequential 3-month moving-average (3MMA) basis, growth in IIP witnessed improvement, reaching a 9-month high at 3.2% yoy.

- IIP for September 2012 has been revised marginally downwards with 0.7% yoy contraction in production as compared to the earlier estimate of 0.4% yoy decline.

Source : Equity Bulls

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