Slowing sales raise concern over level of inventories with companies

The data on companies' inventory, a balance sheet entry, is only reported on a half-yearly and annual basis and is not available for Q3

Reduction in net sales growth has raised concerns over the level of inventories with companies. This is because the data on sales comes in the backdrop of an increase in the average number of days companies took to clear their inventory (called days’ sales of inventory).
 
Days’ sales of inventory had fallen at the beginning of 2019-20 (FY20), indicating improving sales momentum, but reversed in September, rising to 45.7 days compared to 44.5 days in March. This is based on a sample of 196 S&P BSE 500 companies (excluding financials and oil & gas) with continuous data since at