Core sector growth continues to see-saw; likely to move up next month

The Index of Eight Core Industries has fallen 0.1% in March 2015 as against March 2014. The combined index stood marginally lower at 177.8. 

This was the index's worst performance in 15 months. 

This index is important as it comprises nearly 38% of the weight of the items included in the calculation of India's Index of Industrial Production (IIP). 

Sectors like coal performed better as its production rose by 6% in March 2015 versus the same month last year. Coal production in April to March period was registered even better at 8.2%. 

Crude oil and electricity saw a rise of 1.7% each on an quarter-on-quarter basis and natural gas declined by 1.5%. 

While fertilisers saw a jump of 5.2%, steel and cement declined by 4.4% and 4.2%, respectively. 

However, in the month of February, the index had risen by 1.4%, slowest in 17-month period. This was due to a higher base of a 6.1% rise in the index during February of 2014 (. 

A similar story has appeared during March as well. 

The index, during March of 2014, stood at 177.9 as against 159.2 in February 2014. 

Barring December 2014 and January 2015, no other month over the past 12 months have clocked core sector growth index at over 170. 

As a matter of fact, growth in April 2014 was a lowly 160.9. 

What this means is that the index for core industries will definitely post a healthy rise next month because of the low base of April 2014 and is expected to continue to do so over the next few months.