“Though there are other signs of slowdown in industrial growth (the slower growth of the Index of Industrial Production in the first nine months of the current fiscal year), overall business sentiments have improved,” National Council for Applied Economic Research said in its latest quarterly review.

This is second consecutive increase in business confidence (BCI) after two sluggish quarters during 2007, it said, adding it is now inching up to the January 2007 peak of 157.3 points.

The report said there is an increase of 13 per cent in the assessment of the investment climate as compared to the previous quarter.

The large IPOs that were expected perhaps also reflected improved sentiments, it said.