Industrial growth falls to 17-month low of 0.5 pc in November
New Delhi, Jan 11: Industrial output growth dropped to a 17-month low of 0.5 per cent in November on account of contraction in manufacturing sector, particularly consumer and capital goods.
Factory output as measured in terms of the Index of Industrial Production (IIP) had grown by 8.5 per cent in November 2017, as per data released by the Central Statistics Office (CSO) Friday.
The previous low was in June 2017, when IIP growth contracted by 0.3 per cent.
The growth for October 2018 was revised upwards to 8.4 per cent from 8.1 per cent.
During the April-November period, industrial output grew 5 per cent as compared to 3.2 per cent in the same period of the previous fiscal.
The manufacturing sector, which constitutes 77.63 per cent of the index, recorded a contraction of 0.4 per cent in November as against a growth of 10.4 per cent a year ago.
The mining sector posted 2.7 per cent growth during the month as against 1.4 per cent in November 2017.
Power sector output also grew by 5.1 per cent from 3.9 per cent a year ago.
Capital goods output declined by 3.4 per cent, compared to 3.7 per cent growth a year ago. Consumer durables output also dipped by 0.9 per cent as against a growth of 3.1 per cent a year earlier. Consumer non-durable goods also saw a contraction of 0.6 per cent as compared to 23.7 per cent growth a year ago.
In terms of industries, 10 out of 23 industry groups in the manufacturing sector showed positive growth during November 2018.
As per use-based classification, the growth rates in November 2018 over November 2017 are 3.2 per cent in primary goods, (-) 4.5 per cent in intermediate goods and 5 per cent in infrastructure/construction goods.
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Rupee surges 50 paise to 92.56 against USD in early trade after US, Iran agree to 2-week ceasefire
Mumbai (PTI): The rupee appreciated 50 paise to 92.56 against the US dollar in early trade on Wednesday after US President Donald Trump announced suspension of military strikes against Iran for two weeks.
Forex traders said the two-week ceasefire announcement triggered a wave of outsized bargain buying amongst the risk assets as Asian Stocks, Dow futures, Gold and Silver all rallied while Brent Oil fell below USD 100 to USD 96 per barrel.
The rupee in accordance surged to 92.56 levels, with the RBI deadline still in place till the 10th of April (regarding squaring of positions taken overnight up to USD 100 million) while the RBI announces its monetary policy today at 10 am.
At the interbank foreign exchange market, the rupee opened at 92.92 against the US dollar, then gained ground to touch 92.56 against the US dollar in initial trade, registering a gain of 50 paise over its previous close.
On Tuesday, the rupee had settled at 93.06 against the American currency.
Attention now shifts to the RBI’s first Monetary Policy Committee (MPC) meeting of FY 2026–27. The key focus areas will be: RBI's outlook on inflation and growth, its assessment of global uncertainties and any indication of focus on currency stability.
"The tone of the policy will be closely tracked, especially given the rapidly changing global environment," CR Forex Advisors MD Amit Pabari said.
The decision of the six-member Monetary Policy Committee (MPC), headed by Reserve Bank Governor Sanjay Malhotra, will be announced at 10 am.
Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was down 0.90 per cent at 98.96.
Brent crude, the global oil benchmark, was trading lower by 12.68 per cent at USD 95.42 per barrel in futures trade, after the announcement of the ceasefire.
President Trump announced a two-week suspension of military strikes against Iran just hours before his 8 pm ET deadline.
Iran agreed to allow safe navigation through the Strait of Hormuz during the ceasefire, triggering sweeping market moves across oil, equities and currencies.
The rupee is likely to remain range-bound with a bit of volatile moves between 92.50 to 93.50 as the markets await the RBI's monetary policy.
On the domestic equity market front, the 30-share benchmark index Sensex was trading 2527.47 points or 3.39 per cent higher at 77,144.05, while the Nifty jumped 767.25 points or 3.32 per cent to 23,890.90 in initial trade.
Foreign Institutional Investors offloaded equities worth Rs 8,692.11 crore on Tuesday, according to exchange data.
