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India's industrial production (IP) growth moderated to four month low of 2.4 per cent year-on-year (YoY) in July, from 12.3 per cent YoY in June, partly due to base effect, said Morgan Stanley in a report.

This was below its four per cent and consensus 4.2 per cent estimates, said Morgan Stanley.

On a seasonally adjusted sequential basis, IP contracted by 7.1 per cent month on month (MoM), versus growth of 2.5 per cent in June.

According to the report, although growth slowed across the board, mining was the only sector to contract, by 3.3 per cent.

Manufacturing activity growth slowed to 3.2 per cent, and electricity production to 2.3 per cent.

On a YoY basis, growth decelerated for all sectors, with consumer non-durables declining by two per cent.

Capital goods recorded the highest growth at 5.8 per cent.

The high-frequency data depicted continued divergence in domestic versus external demand, with the global slowdown impairing trade, financial conditions and business sentiment, said Morgan Stanley.