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Published on 14/11/2019 5:09:30 PM | Source: Tradingbells

Views On India`s Retail inflation Data - Mr. Amit Gupta

Posted in Expert Views| #Expert Views #TradingBells

Below is the Views On India's Retail inflation data By Mr. Amit Gupta, CEO & Co-Founder, Tradingbells

 

Inflation index CPI has moved above the mandated level of MPC of 4% which is a cause of concern but the rise in CPI is mainly on account of food and vegetable inflation while core inflation eases. At the same IIP at 8 years low which is witnessing a gloomy picture of the economy. RBI has to take a tough call to keep a balance between growth and inflation. There are two possibilities in December monetary policy: First, MPC may take pause in December policy and cut in later policies after understanding trend in CPI as US fed chairman Powell also indicated pause in December Fed meeting and Second, MPC may overlook CPI and continue with rate cut cycle by saying that rise in CPI is mainly on account of food and vegetable inflation which may normalize soon.

The market may see some pressure especially Banking and other financial stocks after CPI data but the overall trend of the market will remain bullish till Nifty manages to trade above 11700 level. 

 

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