Core sector grows 4.4% in May, fastest in 6 months

Core sector growth revived in May, clocking fastest pace in six months, led by a turnaround in electricity, oil refining, steel and cement sectors, bringing some cheer for policymakers who have been battling a sluggish industrial sector Jupiter Astro Book 2015-2016

Government data showed on Tuesday the core sector, which spans electricity, coal, steel, cement, refinery production, natural gas, crude oil and fertilizers, rose an annual 4.4% compared to a contraction of 0.4% in April. 

The sector accounts for 38% of the index of industrial production and should augur well for the industrial output data due later in the month. The industrial sector has been facing headwinds for the past several months due to a string of factors Jackpot Trading Tips

The government has unveiled several measures to revive stalled projects and got them off the ground and analysts say the impact of the policy measures would be visible in the months ahead. 

But economists say the trend has to sustain to signal a firm recovery. "Growth in steel and cement was 2.6% this month which could reflect some action in the infra space based on government expenditure during this period. But it may be premature to form such a conclusion and clearly some more data points are required to be analyzed before drawing firm conclusions of a turnaround," said Madan Sabnavis, chief economist at Care Ratings  Intraday Trading Tips

Coal, electricity and refinery products displayed robust growth.