ICICI Securities: Decoding The Surprisingly Positive Growth In Manufacturing In Q2 FY21
Sparks fly as an employee uses an angle grinder inside a factory in Mumbai, Maharashtra, India. (Photographer Dhiraj Singh/Bloomberg)

ICICI Securities: Decoding The Surprisingly Positive Growth In Manufacturing In Q2 FY21

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.

ICICI Securities Report

The Central Statistics Office released gross domestic product numbers for Q2 FY21 on November 27, 2020.

Although the economy slipped into ‘technical recession’ due to negative growth in second consecutive quarter, the contraction in economic activity was much lower than expected (actual: down 7.5%, Reserve Bank of India Nowcasting model: down 8.6%).

Positive growth in manufacturing gross value added during the quarter when relevant high frequency indicators (such as index of industrial production manufacturing) contracted was puzzling.

To gain better understanding of what drove better-than-expected growth in manufacturing GVA, we analysed 1,945 listed manufacturing companies.

Click on the attachment to read the full report:

ICICI Securities Economy Q2 Manufacturing.pdf


This report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the brokerage and do not represent the views of BloombergQuint.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

BQ Install

Bloomberg Quint

Add BloombergQuint App to Home screen.