It is official now and not a speculation that the CPI has fallen.....yes thanks to dropping prices for the food articles and vegetables ....we live in a nation where we have to depend on the vegetable growers and vendors who are no way connected to the policy decisions of the RBI, even though the RBI has to depend on the them to take a policy decision.Ironic is it not?Now will these prices hold, do not think so it will increase and has been increasing this month.For reasons, more money is coming into circulation thanks to the hidden funds coming out for the elections, and the recent rain and hail storms have damaged crops, which is not being mentioned in great detail any where but will have an effect soon enough.
The core inflation is something which does make sense and it has risen yet again.Why is something which needs to be analysed and studied in detail and it is something which does not bring a smile to R.R's face even if the CPI came down.For that reason alone he will not change the policy rates, and before the policy date we hope no black swan event happens which could then make him think it is time to increase yet again.The rupee looks very powerful at the moment and nothing can challenge it at the moment. But all this could change in a momentary notice when the world market goes down and every one runs to buy the Dollar.
Another flat IIP. Now if we have a series of flat or lower IIP's we are not even meet our targets anytime soon.Yes the gamble is on the outcome of the elections and hope of a stable government etc. etc.....but that is still some way off and even IF we get a stable government, which looks difficult at the moment.Till then we will keep piling on these dismal figures.
Will the market rally?, it should initially in the morning, till reality hits with the slew of figures coming out from China by 11 am.To a large extent most of these figures i.e cpi and iip have been taken into account and nothing extraordinary has happened to make a big move in the market unless the Locusts in the forms of FII's have more money to be parked in our markets, decide to take it up.
The core inflation is something which does make sense and it has risen yet again.Why is something which needs to be analysed and studied in detail and it is something which does not bring a smile to R.R's face even if the CPI came down.For that reason alone he will not change the policy rates, and before the policy date we hope no black swan event happens which could then make him think it is time to increase yet again.The rupee looks very powerful at the moment and nothing can challenge it at the moment. But all this could change in a momentary notice when the world market goes down and every one runs to buy the Dollar.
Another flat IIP. Now if we have a series of flat or lower IIP's we are not even meet our targets anytime soon.Yes the gamble is on the outcome of the elections and hope of a stable government etc. etc.....but that is still some way off and even IF we get a stable government, which looks difficult at the moment.Till then we will keep piling on these dismal figures.
Will the market rally?, it should initially in the morning, till reality hits with the slew of figures coming out from China by 11 am.To a large extent most of these figures i.e cpi and iip have been taken into account and nothing extraordinary has happened to make a big move in the market unless the Locusts in the forms of FII's have more money to be parked in our markets, decide to take it up.