WPI inflation in January spiked to 5.25 percent against 3.39 percent in previous month and also ahead of expectations of 4.16 percent. Yesterday, however, retail inflation declined to 3.17 percent against 3.41 percent due to low demand after demonetisation.
According to the global financial services major, the WPI readings are likely to head towards 4 percent in the first quarter of this year from 3.4 percent in October-December quarter of 2016.
According to D&B Economy Observer Index, while government capital expenditure has gone up, low private investment is likely to keep upturn in investment activity 'subdued' in the short term, while the medium term outlook looks bullish.
"WPI inflation is expected to print between 4-4.5 percent in the remainder of 2016, whereas CPI inflation would range within 4-5 percent in the same months, closing the wedge between the two metrices," Senior Economist at ICRA Aditi Nayar said.
Wholesale Price Index inflation increased to 3.74 percent in the month of August compared with 3.55 percent in preceding month.
According to a report by Dun & Bradstreet, while a greater area is covered under sowing of kharif crops, especially rice and pulses, price correction in food articles is expected to materialise post-October.
Experts see some consolidation in near term as the market digested June quarter earnings and inflation data. They don't expect any rate cut in 2016.
According to the Japanese financial services major, the year-on-year WPI inflation is expected to rise on waning base effects and average 0.6 percent in 2016 from (-)2.7 percent in 2015.
Equity benchmarks gained further in afternoon trade with the Nifty reclaiming 8550 for the first time since August 11, 2015.
WPI inflation is expected to average around 0.6 percent in 2016 compared with (-) 2.7 percent in 2015, owing to rising input costs, especially commodity prices, says a Nomura report
As WPI inflation inched up to 0.79 percent in May, India Inc called for better supply-side management to rein in the higher vegetable prices, with experts anticipating a surge in food inflation going ahead
The BSE Midcap and Smallcap indices gained 0.3-0.8 percent on positive market breadth. About 1506 shares advanced against 768 declining shares on Bombay Stock Exchange.
Industry chamber CII said going forward, the prospects of normal monsoon along with subdued global commodity prices and favorable government policies should restrain upside pressures on inflation.
February Wholesale Price Index inflation remained unchanged at -0.9 percent compared to preceding month but December WPI inflation revised to -1.06 percent from -0.73 percent.
Infosys jumped 6.5 percent followed by Lupin (up 2 percent) and Reliance Industries (up 0.15 percent).
WPI inflation for November came in at negative 1.99 percent against negative 3.81 percent in preceding month and a CNBC-TV18 poll forecast of negative 2.59 percent. September WPI inflation has been revised to negative 4.59 percent from negative 4.54 percent earlier.
WPI inflation came in at negative 3.81 percent for October against negative 4.54 percent in previous month. October core inflation stood at negative 2 percent against negative 1.93 percent in September.
The wholesale price index (WPI) came in at -4.54 percent, improving somewhat from -4.95 percent in August, government data released today showed.
Consistent contraction in inflation raised hopes of rate cut by Reserve Bank of India in its forthcoming monetary policy on September 29. Bank Nifty rallied 1.8 percent as Axis Bank surged 3 percent. ICICI Bank, HDFC Bank, State Bank of India, Bank of Baroda and Punjab National Bank gained 1-2 percent.
NTPC, Hindalco, Vedanta, Tata Steel and Axis Bank were top gainers while Maruti, Bajaj Auto, Reliance and Tata Motors were major laggards.
WPI inflation for the month of June 2015 was -2.4% and continues to be in the negative zone for 5 months now. "as there has been no pick-up in bank credit, there is no pressing need to lower rates at this point of time. Therefore no rate action is expected in the August review", says CARE Ratings.
The market maintained its positive trend in noon trade after the government announced WPI inflation at negative 2.36 percent for May against negative 2.65 percent in previous month.
The rating agency has projected the growth at 7.7 percent lower than the official forecast of 7.9%.
A late bear-attack dragged the market deep in red in the last half an hour of trade on Wednesday. Equity benchmarks shed more than 1 percent intraday with the broader markets falling in step. Technology, pharma, auto, capital goods and private banking & financials stocks saw selling pressure.
Wholesale price index (WPI)-based inflation for March fell to a new low of -2.33 percent, the fourth successive month of deflating prices after the flat reading in November.