IIP stand for industrial production data, if it is higher as compared to previous then we can conclude that industries are growing, showing growth; however if IIP data comes out to be negative then there was contraction in the production. This IIP is very important measure of economy’s growth; it is watched by the professional across country. Now let us learn how to trade this IIP data release news, but remember there are 6 core sectors which contributes to IIP, so traders need to watch even sector to see the performance of industries. Most of contribution comes from capital good, mining and infrastructure. Now if capital goods data comes out as contraction for sector then we will see a sharp fall in shares of capital goods giants like L&T and BHEL. So in that case we can go short on BHEL future or LT future, as fall is likely after contraction on sector. If mining sector shows growth then we are going to see mining companies bouncing sharply, like Sesagoa. IIP data may also affect entire market so in case of bad IIP number market may see strong selling, or in other case if IIP comes good then market will show decent bounce, well IIP is fundamental news release and should be watched carefully as it has high and direct impact to growth.