Impact of IIP Numbers on Indian Stock Market
Indian stock markets are very sensitive to IIP Numbers. A better IIP numberwould show a positive growth on our Industrial production and share markets would possibly cheer.
How IIP Data is formed?
IIP data is a simple index which provides information about the growth of different sectors of our economy like mining, electricity, Manufacturing & General. The IIP index reflects the growth in India’s industrial activity and excludes all kinds of services. The base year for the index over the period of the analysis is 1993-94.
Use-Based Classification
Another classification is use-based (consumption based), where IIP is classified on the base of use like Basic Goods, Capital goods, Intermediate goods & consumer goods.
Sectors in IIP Data
The weightage of Indian IIP data is broadly divided into three segments - manufacturing (79.36%), mining & quarrying (10.47%) and electricity (10.17%)…
Manufacturing : includes items like food items, machinery, wood furniture etc
Electricity : includes generation and transmission of electricity ( from various sources like - thermal, hydro, solar etc)
Mining : includes mining of coal, oil other metals etc