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.

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