IIP for April rises to 1.4%, adds to revival signs
India's industrial output rose in April, beating forecasts for a fall, driven by a pick-up in domestic demand that analysts said
confirmed nascent signs of recovery and an end to the central bank's rate-cutting cycle. Factory output in April rose 1.4 percent from a year earlier, recovering from a revised fall of 0.8 percent in March and bettering forecasts for a decline of 0.2 percent, adding to signs from China that activity in emerging economies was picking up. "Output growth almost certainly bottomed on a year-on-year basis in March and we are looking for a healthy upward trend to develop from here," HSBC economist Robert Prior-Wandesforde said. "It also fits in with our theory that the rebound in industrial production is due to domestic demand, the same case as with China," he said. Figures from China showed factory output growth rebounded in May alongside stronger expansion in credit and consumer spending, adding to hopes it can lead a global revival. Manufacturing output, which accounts for 79 percent of India's industrial production, rose an annual 0.7 percent in the first month of the 2009/10 fiscal year. The benchmark 10-year bond yield rose 6 basis points to a two-month high 6.94 percent on the data, which was seen confirming an end to the central bank's aggressive rate cuts since last October

( Economic Times )