Mumbai: Manufacturing activity showed moderate growth with annual SBI Composite Index rising to 53.1 in December compared to 53 in the previous month. The SBI Composite Index has mainly two indices - SBI Monthly Composite Index and SBI Yearly Composite Index.

The month-on-month index declined to 50.6, showing low growth in the month compared to 51.2 in November. This indicates a possible slowdown in IIP growth in the next couple of months.

"We, however, believe even though the momentum  may have slowed down the outlook for some of the sectors  appears largely positive," SBI Research said today. One such sector is the fertilizer sector.

The financials of the 26 fertilizer companies reported an improvement in operations in terms of operational and post-tax growth in the first half of the fiscal. The bottom line of the sector grew by 34 per cent, while the top line grew by only 2 per cent, it said.

The new project announcement in the fertilizer sector is showing an upward trend with 13 projects in FY14 to 34 projects in FY17 entailing an investment of Rs 23,614 crore in FY17 from Rs 10,172 crore in FY14. This indicates some renewed interest in the sector, the report said.