April factory output (IIP) rose to a surprising 3.4 per cent, signaling a rebound in industrial activity. The rise was on the back of a sharp growth in the electricity sector, which saw a growth of a huge 11.9 per cent vs 5.4 per cent for the month of March.
Consumer durables growth continued to remain negative though it was much better at -7.6 per cent vs 11.6 per cent earlier.
But, a huge surge in capital goods growth was the highlight of the IIP data. Capital goods sector grew at 15.7 per cent for the month of April vs 12.5 per cent for the month of March.
This was the first time that industrial recovery seems strong since Sept of last year.