The CPI and the IIP data is set to come out this evening, and what is in store? A softer CPI which is primarily dependent on vegetable and food stuff prices to bring it down on headline basis. The Core CPI will remain sticky or even increase which will make the RBI see red. There will be no interest rate drop or otherwise in any case if some is waiting for such a move then it would be wishful thinking.This is very obvious in the way the government walked out from getting the bond index going. They are not too sure that the economy will hold or the rupee will be stable or show the resilience it has now or will it continue.
Anything below 8.3 is a a good thing going above that is not too great......core inflation is the key....if that drops then it gives new meaning to the whole affair.As for the IIP no one has doubts that we are contracting further and our stock market is flying on such "happy news" if the quantum of the contraction is more than 1.3 percent then we need a re look at the entire act if lower then we should thank the powers that be the damage was less.We are already 3 months into this calendar year nothing great is happening to our economy except the market is being pumped up by hot money brought in buy the migratory locust who have wandered in from other destroyed submerging markets.
Anything below 8.3 is a a good thing going above that is not too great......core inflation is the key....if that drops then it gives new meaning to the whole affair.As for the IIP no one has doubts that we are contracting further and our stock market is flying on such "happy news" if the quantum of the contraction is more than 1.3 percent then we need a re look at the entire act if lower then we should thank the powers that be the damage was less.We are already 3 months into this calendar year nothing great is happening to our economy except the market is being pumped up by hot money brought in buy the migratory locust who have wandered in from other destroyed submerging markets.