IIP data Impact on Indian Stock Market

 

On the economic front one has to keep an eye on the IIP data as it holds the key to the movement in the stock price. As a matter of fact the India’s Index of Industrial Production (IIP) numbers for April 2011 as per the new series grew at 6.3% versus 13.1% YoY. The data was the first of a new series which includes 45% more items and has 2004-05 as its base year. A high base effect (16.7% IIP in April 2010) has partially contributed to the weak numbers.

Data released by commerce secretary Rahul Khullar at the market close revealed that India's exports grew by an impressive 56.9 percent to $25.9 billion year-on-year in May, while imports stood at $40.9 billion, the highest figure in the last four years, resulting in a trade deficit of $15 billion for the month. This is a positive and impressive move for us as a nation.

Thus IIP data has an important significance for the India stock market and one must not ignore it atleast the day it is likely to be announced and should make sure that one trades with perfect. If you like our post than do not forget to refer our intraday tips india website to your friends and colleagues.