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Market Headstart: IIP, CPI data to drive market today; IRCTC eyed post bumper Q3

Trends on SGX Nifty indicate a flat opening for the broader index in India, with a 5 point loss or 0.04 percent. The Nifty futures were trading around 12,224-level on the Singaporean Exchange.

February 13, 2020 / 09:22 AM IST

Indian market is likely to react to macro data which was released post market hours on February 13. The retail inflation surpassed RBI estimate of 6 percent (higher-end) to hit a 6-year high in January while the factory output data reversed trend which will put rate cut on hold for now.

India's retail inflation rate in January stood at 7.59 percent, according to data released by the Central Statistics Office (CSO) on February 12. India's industrial output contracted 0.3 percent in December against a growth of 1.8 percent in November.

“The sharp spike in food inflation has led India’s Jan CPI to breach a six-year high of 7.59% compared to 7.35% seen in Dec. It is the consecutive second month, that CPI has breached the upper band of RBI’s inflation target,” Rahul Gupta, Head of Research- Currency, Emkay Global Financial Services said.

“While unexpectedly IIP has contracted to 0.3% in Dec from 1.8% in Nov. Due to higher inflation, RBI has been maintaining a status quo since Dec 2019, if inflation continues to hover above 6%, we don’t expect RBI to cut interest rate or change its accommodative policy stance,” he said.