India IIP for September 2020 - Angel Broking

Mr. Jyoti Roy - DVP - Equity Strategist, Angel Broking Ltd

"India IIP for the month of September grew by 0.2% YoY as compared to a contraction of 8.0% in August while IIP for the first half of FY2021 has contracted by 21.1% YoY. The expansion for the month of September could be partly attributable to continued improvement in the economy along with a low base of last year when the IIP had contracted by 4.6% YoY. During the month manufacturing was the only sector which witnessed a contraction of 0.6% while mining and electricity registered growth of 1.4% and 4.9% respectively. We expect IIP to improve further in October due to pent up demand, inventory push prior to the festive season and further opening up of the economy. The recovery is already being reflected in high frequency data like Auto sales and PMI numbers. The manufacturing PMI for October at 58.9 is the highest reading since mid 2008 and points to a sequential expansion in manufacturing activity in October."

Source : Equity Bulls

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