Core Sector Update - High Growth Numbers Must Be Read With Caution: CARE Ratings
Cooling water pours onto a red hot steel slab in the slab casting shop at a factory in Haryana, India. (Photographer: Udit Kulshrestha/Bloomberg)

Core Sector Update - High Growth Numbers Must Be Read With Caution: CARE Ratings

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BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

CARE Ratings Research Report

The Eight core sector output rose to 32-months high of 6.8% in March 2021 chiefly on account of a negative base of 8.5% in the corresponding month of the previous year.

Therefore, one needs to read the core sector growth number with caution.

The pick-up observed in March 2021 has been on account of significant double-digit growths witnessed in steel, cement, electricity and natural gas, where the production activity had seen a sharp decline in March 2020 on the back of the imposition of the nation-wide lockdown.

The contraction witnessed in the month of February 2021 has been revised upwards to down 3.8% as against the previous estimate of 4.6%.

Click on the attachment to read the full report:

CARE Ratings Core Sector March 2021.pdf

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