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Published on 19/09/2020 9:34:53 AM | Source: ICICI Direct

IIP contracted for a fifth consecutive month amid local lockdowns due to pandemic By ICICI Direct

Posted in Economy News| #Economy #IIP #Inflation #CPI #ICICI Direct

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CPI Inflation came in at 6.69% in August, marginally lower compared to the revised 6.73% (earlier projected at 6.93%) in the previous month. The combined food price inflation (CFPI) for August was at 9.05% against 9.27% in July primarily driven lower by cereals and products while vegetables inflation at 11.4% remained high.

IIP contracted for a fifth consecutive month amid local lockdowns due to pandemic. However the fall slowed down to 10.4% YoY in July vs. a 15.7% decline in June. Manufacturing sector contracted 11.1% YoY. Mining, power output declined 13%, 2.5% YoY, respectively. Under use-based segments, primary goods de-grew 10.9% whereas capital goods fell 22.8% YoY. Consumer durables fell 23.6% YoY while consumer non-durables grew 6.7%.

As per Siam data, total auto industry wholesale volumes for August 2020 were at 21.2 lakh units, down 2.4% YoY (domestic up 1.6%, exports down 19.4%). Domestic 2-W volumes rose 3% YoY while PV volumes were up healthily by 14.2%. The 3-W segment, however, came off by 75.3% YoY

India's coal import declined 34.9% YoY to 12.46 million tonnes (MT) in August 2020 (19.14 MT in August 2019) on account of subdued demand for the dry fuel from consuming sectors like power and cement.

The Civil Aviation Minister has proposed an excise duty cut on aviation turbine fuel (ATF) from 11% to 0%. Domestic air passenger traffic for August 2020 fell 76% YoY to 28.3 lakh passengers though it improved on an MoM basis from 21 lakh passengers reported in July 2020 due to easing of restrictions.

The government intends to introduce three ordinances in the agriculture sector aimed at a free market economy thereby enabling farmers to sell their produce anywhere pan India without the help of intermediaries

According to media sources, the Department for Promotion of Industry and Internal Trade (DPIIT) has permitted up to 74% FDI under automatic route in the defence sector under 'Atmanirbhar' initiative announced earlier, subject to access to modern technologies

Brent Crude prices ended higher at US$ 43.4/barrel as compared to previous week’s closing price of US $ 39.8/barrel. Gold prices ended higher at $ 1962/ounce as compared to previous week’s closing price of $ 1957/ounce. Bond yields ended lower at 6.02% as compared to previous week’s closing price of 6.04%

 

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