Indian economy slipping further into the trough

The economy seems to be slipping further into the trough rather than coming out of it. Thursday brought more than its fair share of bad news — a fall in factory output of 1.8%, a badly dented bottomline for Tata Motors, the biggest ever quarterly loss at IOC and a near R10,000 crore loss at HPCL. More than half the companies in the BSE 100 have missed estimates — GVK, Pantaloon, Tata Power, Indian Hotels, SAIL, Bharti, the list goes on. The management commentary from Tata Motors, which turned in a sad set of numbers for the June quarters, was far from cheerful; demand for the heavy and medium-commercial vehicles, a proxy for the Indian economy, it said, was under pressure.

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