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

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