Nov IIP Update

India's industrial production bounced back sharply in November, comfortably beating  the consensus estimates of economists. Data released by the Government showed a sharp reversal in the erratic IIP data. The factory output, as measured by the index of industrial production (IIP), grew by 5.9% in November versus a 4.7% (revised figures) contraction in the previous month. Industrial output in the April to November 2011-12 period grew by 3.8% over the corresponding period a year earlier. Further, all the other sections of the IIP, except for the Mining and Capital Goods, have also showed a sharp bounce back. This is expected to boost hopes of a policy easing by the RBI sooner or later.