IPP on 12-Oct-09

The data released by the government on Monday showed that the August IIP (index of industrial production) figures registered a growth of 10.4%. This is the fastest pace of growth in about 22 months. The government has revised upwards July IIP growth to 7.2% from an earlier estimated 6.8%. Experts argue that the latest IIP figures gives hope for a faster than expected recovery in the domestic economy cheering investor sentiments.
The BSE consumer durable index was the highest gainer on Monday up by 3.72% on expectation that higher growth will result in increased consumption. The auto sector gained 1.47% with M&M climbing 2.83% while Maruti gaining 2.80%. India’s largest public sector bank State Bank of India was the biggest gainer, up Rs 106.55 or 5.16%.
The robust growth in the IIP figures indicates that the manufacturing sector is expanding. This has raised the expectation of investors on the second quarter earnings of India Inc/
The domestic equity bourses started the week on a solid note after the latest data showed a surge in industrial output in August 2009. The 30 share Sensex of the Bombay Stock Exchange (BSE) surged 384.01 points or 2.31% to end the trading session above the psychological 17,000 level at 17,026.67 points. On the other hand, the broader 50 share Nifty of the National Stock Exchange (NSE) closed the day at 5,054.25 points, gaining 2.21% or 109.05 points.