IIP and CPI Inflation Data - Ms. Bhupali Gursale - Economist - Angel Broking

"The further pick-up in CPI inflation to 11.2% during November 2013 as compared to 10.2% in the previous month is a major disappointment. Along with high food inflation, core CPI inflation has also paced significantly upwards to 8.9% as against 8.1% in October 2013. At the same time, industrial production for October 2013 has declined by 1.8% as consumer durables contracted by 12%, weighing on overall production by about 200bps and this reflects continued weakness in the demand environment. We believe that the inflation print is clearly not likely to go down well with the RBI during its monetary policy review and hence we expect a 25bp hike in the repo on December 18."

Source : Equity Bulls

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