Motilal Oswal: India’s IIP Decline Slower Than Expected In July 2020

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..Motilal Oswal Report.Better than both our expectation and market consensus of decline of 11.2% and 11.8% YoY, respectively, the Index of Industrial Production (IIP) contracted 10.4% YoY in July 2020.This was compared with decline of 15.8% a month ago and average decline of 31.4% over March- June 2020.This is the second month that IIP decline has come in slower than expected.Notably, IIP contraction for April 2020/June 2020 has been revised to down 57.3%/down 15.8% YoY currently from down 57.6%/down 16.6% earlier.While all three components – mining, manufacturing, and power generation – continued to witness contraction even in July 2020, the extent of decline was much lesser.Manufacturing activity declined by 11.1% YoY in July 2020 (versus decline of 16% YoY in June 2020), the slowest pace of contraction since the fallout from the Covid-19 pandemic began in March 2020.Additionally, mining activity contracted 13% YoY (versus down 19.6% YoY in June 2020) and power generation declined just 2.5% YoY during the month (versus down 10% a month ago)..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.

Motilal Oswal: India’s IIP Decline Slower Than Expected In July 2020

Motilal Oswal: India’s IIP Decline Slower Than Expected In July 2020

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