Nifty99000 100%

Sensex99000 100%

Article rating: 3.1
Article rating: No rating
Article rating: 5.0
Article rating: 4.5
Article rating: 5.0
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: 4.7
Article rating: 4.0
Article rating: 3.5
Article rating: No rating
Article rating: No rating
Article rating: 4.0


Unfavourable base effect weighs down December core output

Author: IANS/Thursday, February 1, 2018/Categories: Economy

Unfavourable base effect weighs down December core output

New Delhi - An unfavourable base effect for steel and refinery products pulled India's eight major industries output to a 5-month low in December.

On a sequential basis, the "Index of Eight Core Industries" (ECI) for December grew by 4% from a rise of 7.4% reported for November 2017.

Similarly, on a year-on-year (YoY) basis, the ECI, which represents the output of major sectors like coal, steel, cement and electricity showed a downtrend. It had risen by 5.6% in the corresponding month of the previous fiscal.

"The combined Index of ECI stands at 129.1 in December, 2017, which was 4% higher as compared to the index of December, 2016," the Ministry of Commerce & Industry said.

"Its cumulative growth during April to December, 2017-18 was 4%."

The ECI index carries 40.27% weightage of the Index of Industrial Production (IIP) which is the macro-gauge for India's factory output.

On a sector-specific basis, refinery products, which has the highest weightage of 28.03%, grew by 6.6% in December 2017 as compared with the corresponding month of the last fiscal.

Electricity generation, which has the second highest weightage of 19.85, picked-up by 3.3%.

Steel production, the third most important component with weightage of 17.92, rose by 2.6% during the month under review, whereas coal mining, with a 10.33 weightage, slipped by (-)0.1%.

Extraction of crude oil, which has an 8.98 weightage, declined by (-) 2.1% during the month under consideration.

The sub-index for natural gas output, with a weightage of 6.88, went up by 1%.

Cement production, which has a weightage of 5.37, edged higher by 19.6% in December 2017.

Fertiliser manufacturing, which has the least weightage -- only 2.63 -- edged-up by 3% during the month under review.

Aditi Nayar, Principal Economist, ICRA said: "An unfavorable base effect for steel and refinery products, as well as the continued weak performance of coal, contributed to the sequential dip in the core sector growth in December 2017 relative to the upwardly revised 7.4% expansion in November 2017."

"The disaggregated data reveals a broad-based sequential slowdown, with six of the eight constituents of the core sector, excluding cement and fertilizers, displaying a downtick in volume growth."

Print Rate this article:
No rating

Number of views (169)/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