Nifty99000 100%

Sensex99000 100%

Article rating: 4.3
Article rating: No rating
Article rating: 2.0
Article rating: 1.5
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: 4.0
Article rating: No rating


Manufacturing activity in slow lane in December: SBI

Author: IANS/Wednesday, December 27, 2017/Categories: Manufacturing

Manufacturing activity in slow lane in December: SBI

Mumbai - Indian manufacturing activity in December improved marginally over the previous month taken over a yearly period, while the index fell more sharply on a monthwise comparison, a key macro data showed.

State-run State Bank of India's (SBI) Composite Index is an indicator of manufacturing activity that helps estimate periods of contraction and expansion.

"The yearly SBI Composite Index for Dec'17 is at 53.1 (Moderate Growth), compared to 53.0 (Moderate Growth) in Nov'17. The M-o-M (month-on-month) index declined to 50.6 (Low Growth) in Dec'17, compared to 51.2 (Low Growth) in Nov'17," according to the bank's latest Ecowrap report.

"This indicates a possible slowdown in IIP (Index of Industrial Production - government data) growth in the next couple of months," said the research report authored by bank Chief Economic Adviser Soumya Kanti Ghosh. 

The Composite Index has mainly two indices -- the SBI Monthly Composite Index and the SBI Yearly Composite Index. 

"A consistent negative (positive) month-on-month forecast in the index will lead to negative (positive) growth rate in year-on-year index after a while," the report said. 

"We, however, believe, even though the momentum may have slowed down, the outlook for some of the sectors appears largely positive. One such sector is fertiliser sector," Ghosh said.

According to SBI, the financials of the 26 fertiliser companies reported an improvement in operations in terms of operating income and net profit growth in the first half of the current fiscal. 

"The bottom line of the sector grew by 34%, while the top line grew by only 2%," said the Ecowrap. 

"The new project announcement in the fertiliser sector is showing an upward trend with 13 projects in FY14 to 34 projects in FY17 entailing an investment of Rs 23,614 crore in FY17 from Rs 10,172 crore in FY14," it added.

Print Rate this article:
No rating

Number of views (164)/Comments (0)

rajyashree guha


Other posts by IANS
Contact author

Leave a comment

Add comment



Ask the Finapolis.

I'm not a robot
Dharmendra Satpathy
Col. Sanjeev Govila (retd)
Hum Fauji Investments
The Finapolis' expert answers your queries on investments, taxation and personal finance. Want advice? Submit your Question above
Want to Invest



The technical studies / analysis discussed here can be at odds with our fundamental views / analysis. The information and views presented in this report are prepared by Karvy Consultants Limited. The information contained herein is based on our analysis and upon sources that we consider reliable. We, however, do not vouch for the accuracy or the completeness thereof. This material is for personal information and we are not responsible for any loss incurred based upon it. The investments discussed or recommended in this report may not be suitable for all investors. Investors must make their own investment decisions based on their specific investment objectives and financial position and using such independent advice, as they believe necessary. While acting upon any information or analysis mentioned in this report, investors may please note that neither Karvy nor Karvy Consultants nor any person connected with any associate companies of Karvy accepts any liability arising from the use of this information and views mentioned in this document. The author, directors and other employees of Karvy and its affiliates may hold long or short positions in the above mentioned companies from time to time. Every employee of Karvy and its associate companies is required to disclose his/her individual stock holdings and details of trades, if any, that they undertake. The team rendering corporate analysis and investment recommendations are restricted in purchasing/selling of shares or other securities till such a time this recommendation has either been displayed or has been forwarded to clients of Karvy. All employees are further restricted to place orders only through Karvy Consultants Ltd. This report is intended for a restricted audience and we are not soliciting any action based on it. Neither the information nor any opinion expressed herein constitutes an offer or an invitation to make an offer, to buy or sell any securities, or any options, futures or other derivatives related to such securities.

Subscribe For Free

Get the e-paper free