Mumbai stock benchmark closes weaker as factory output slips

<p>Indian factory production has fallen over the course of September.</p>

Factory output in India slid in September, according to official figures, sending the Mumbai Sensex stock index lower at close of play on the subcontinent today (November 12th).

Industrial production dropped by 0.4 per cent year on year when most analysts had projected an increase of 2.8 per cent, while manufacturing – which makes up two-thirds of overall output – fell by 1.5 per cent compared to the same time last year.

This disappointing data has raised calls for the government to boost stimulus measures in order to drive growth.

In a bid to offset declining exports as a result of the financial crises in major trading partners the US and Europe, policymakers have been trying to drive domestic consumption by lowering the amount of money banks need in reserve.

The Reserve Bank of India is set to inject 175 billion rupees (£2 billion) into the marketplace.

At 15:20 GMT, the Mumbai Stock Exchange Sensitive Index was lower by 0.07 per cent to an index value of 18670.3 points.

Find the latest spread betting strategies for the international markets at City Index.

Join our live webinars for the latest analysis and trading ideas. Register now

GAIN Capital UK Limited (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.