The improvement in headline index of industrial production (IIP) data was largely led by capital goods. However, investors should take the buoyancy of this component and the overall data with a liberal dose of salt. One, the IIP data itself is very volatile. On this basis, IIP remains subdued at 1.2% (similar to all 2019 prints) and much lower than the series average of 4%. Secondly, the outlook on industrial production growth is subdued globally and India is unlikely to be an outlier.

Source: Mint June 13, 2019 06:45 UTC