The yearly SBI Composite Index for Nov'15 stood at 54.5, compared to last month index of 53.5. However, the monthly index increased to 51.6 in Nov'15, from 50.9 in Oct'15.

The upturn has been majorly driven by manufacturing, while mining and electricity are still acting as a drag on economic activity. Besides, the positive trends in capital goods sector suggest the possible pick-up in economic momentum. IIP is also driven majorly by manufacturing particularly capital goods as revealed by higher ex-mining and ex-electricity growth.

The m-o-m growth in ASCB credit was at 12-month high as of fortnight ended Oct.30, 2015 and internal prognosis suggests that credit growth is likely to grow in infrastructure sectors like power and roads.

The bank said, ''We expect a smart growth in personal loan segment especially in housing (due to rationalization of risk weights and LTV ratios). In fact, October has seen a very healthy growth in retail loans. The rationalization of risk weights and LTV ratios will equip banks with more capital, and internal estimate (albeit based on certain assumptions) suggests that this RBI move would release capital worth Rs. 77.85 billion for entire banking industry.''

As SBI index predicts the industrial growth 2-months in advance, index numbers indicate acceleration in industrial production in coming months., it added.

Further the bank stated, ''The 7th PC to have positive impact on both Steel and Cement industries. Additionally, healthy order book if coupled with faster execution will show positive results for the capital goods and infrastructure sector. There is an immediate need to increase import duty on long steel products. The Government should also provide Infrastructure status to Steel industry.''

The index captures two components of the manufacturing cycle namely month-on-month and year-on-year growth on a scale of 0 to 100. Index above 50 implies growth over previous respective period and less than 50 will suggest a contraction over respective period.