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IIP turned +ve after a long time!

April 13, 2013

The Index of Industrial Production (IIP) numbers for the month of February has come in better- than expected at 0.6%. The bounce in the industrial output has come due to contribution from consumer goods sector, which turned positive after a long period at 0.5% . Consumer Price Index (CPI) declined to 10.39% in March, breaking the five month rising trend, as prices of vegetables and protein based items eased. The CPI based inflation was at 10.91% in February. The inflation, however, continued to remain in the double digit terrain for the fourth consecutive month. Indian markets will closely watch for the WPI data as it would be important inputs in the RBI policy decision for the May meeting.

Over the last few weeks, there are increased concerns over the possibility of an early election but these seem unfounded at the current juncture as none of the key parties stands to gain from it. Meanwhile, the Government hopes to go strong on its reform agenda, focusing on areas that do not require Parliamentary nod. 

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