Expect sharp fall in IIP due to demonetisation: Care Ratings

Contrary to street expectations of a factory output revival, India's Index of Industrial Production (IIP) fell 1.9 percent for the month of October indicating that the festive season was not able to spark industrial revival.

October IIP data is not surprising but rather shocking, said Madan Sabnavis, Chief Economist at Care Ratings.

In an interview with CNBC-TV18 he said that initial signs in the month of October suggested an upsurge, especially in the consumer durables segment.

On the back of good harvest followed by a good monsoon and the festive season, the street expected a major acceleration in the month of October, Sabnavis said.