The Indian Industrial Production
(IIP) came at minus 4.2 %; the expectation was at 2.4% just near the previous
release of 2.5%. It was not alone to blow the economy. Other data were also equally
negative which will hit the growth of the Indian economy. Forex Reserves fell
to US 314.66 billion from the previous release of US 316.31 billion, drop by US
1.65 billion. The holding of the reserve is reduced due to the heavy balance of
payment adjustments. Manufacturing output came at negative 7.6% from the
previous release of 2.5%, shows the manufacturing growth in the economy is
falling sharply. Consumer price index came at 4.38% from the previous release
of 5.52% just below the expectation of 4.63%; showing the consumer are looking
further drop in the price of consumer goods in near future. Low impact data
which came along were Cumulative Industrial Production and Deposit Growth both
came lower then expectation, whereas Bank Loan growth has increase
marginally.
