Below are Quote on CPI and IIP numbers by Mr. Rahul Gupta, Head of Research- Currency, Emkay Global Financial Services

CPI

"India's Dec CPI has come as a surprise, lower than the market expectations. The significant drop in vegetables and food prices has led to a sharp fall in the inflation data. It’s after April 2020, inflation has come in between RBI’s medium target range of 2-6%. However with increase in crude oil prices and fears over bird flu, inflation may remain sticky for sometime. This may give RBI some room to cut interest rates but in our view, the central bank may continue its pause at the Feb’s policy and look out for more incoming data.”

IIP

"It was obvious that the industrial growth will contract after the output in eight-core sector slumped. Overall the industrial recovery continues to be uneven and fragile and will require the stimulus support to stay in momentum.”

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