Nirmal Bang: India’s July IIP Declines 10.4% YoY; GDP Contraction In Q2 May Narrow Significantly

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Nirmal Bang Report.Index of Industrial production (IIP) declined by 10.4% YoY in July 2020, marginally better than our estimate of a 12.1% decline and Bloomberg consensus estimate of a 12% decline.The reading for the previous month was revised up to -15.8% from -16.6% earlier.The recovery in July 2020 was led by the manufacturing sector which declined by 11.1% YoY after a 16% decline in the previous month.Mining sector output registered improvement in July 2020 but was still down 13% YoY.Electricity production registered significant improvement in July 2020 and was down by only 2.5% YoY.However, 21 of 23 manufacturing sectors were still in the negative territory, barring pharmaceuticals and tobacco products.Consumer non-durables (mainly FMCG and pharmaceuticals) continued to be the only sector in the positive territory in July 2020. Its output grew by 6.7% YoY in July 2020, but was down from a 14.3% increase in the previous month.Chemical products’ output, which had turned marginally positive in June 2020, contracted again in July 2020. Overall, the reading suggests that the recovery continues and the contraction in gross domestic product in Q2 FY21 may narrow significantly from the 23.9% recorded in Q1 FY21.We are working with a GDP contraction of 8.2% in Q2 FY21 and 9.4% in FY21. Click on the attachment to read the full report:.DISCLAIMERThis 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.

Nirmal Bang: India’s July IIP Declines 10.4% YoY; GDP Contraction In Q2 May Narrow Significantly

Nirmal Bang: India’s July IIP Declines 10.4% YoY; GDP Contraction In Q2 May Narrow Significantly

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