March IIP at 7.3 %

The IIP figure for the month of March stood at 7.3 % YoY up from the 3.6 % in the month of February, according to data released by the Central Statistics Organization.

Manufacturing output which constitutes about 80 percent of the industrial production rose by 7.9 %.

Industrial output grew 7.8 percent in the 2010 – 11 fiscal that ended in March compared to the 10.5 percent growth clocked in the previous fiscal.

The HSBC Markit Purchasing managers index moved up 0.1 % to 58 for the month of April. The index was at 57.9 in March.

The RBI stepped up it fight against inflation by hiking the interest rates by 50 bps and is seems willing to take more tough measures to rein in inflation. Experts believe that more tough measures by RBI will hamper the industrial growth as the cost of borrowing will increase further.

Markets haven’t reacted well to the IIP numbers as both the indices are in the red. At 12.20 PM the Sensex was down 98 points at 18486 and the Nifty was down by 33 points at 5531.

Sector wise  figures

Mining Sector growth at 0.2% vs 12.3% y-o-y

Manufacturing Sector growth at 7.9% vs 16.4% y-o-y

Basic Goods growth at 4.3% vs 10.8% y-o-y

Electricity growth at 7.2% vs 8.3% y-o-y

Consumer Goods growth at 7.7% vs 9.3% y-o-y

Capital Goods growth at 12.9% vs 36% y-o-y