9

Fundamental Analysis I: Economic Analysis

Chapter Query

The capital markets are used to mobilise resources and redistribute the same according to the economic needs to support the real (products and services) economy. The Indian economy has recorded the following growth rates.

The Index of Industrial Production (IIP) showed a growth of 4 percent in June 2002. The manufacturing sector, mining, and electricity registered a growth of 3.6 per cent, 9 percent, and 3.5 percent respectively. The consumer durables sector index recorded a decline of 4.5 per cent in May 2002. The indexfor non-consumer durable goods grew by 6.5 per cent in June 2002.

The core sector grew by 9.3 per cent in the month of July. The core sector includes finished steel, ...

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