CPI inflation came in at 6.52% vs market expectation of 6.25% Says Mr Marzban Irani, LIC Mutual Fund
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Below are Views On CPI Data By Mr Marzban Irani, CIO - Debt , LIC Mutual Fund
CPI inflation came in at 6.52% vs market expectation of 6.25%.
Food inflation was the main culprit driven by inflation in cereals prices which rose at the rate of 16% yoy increase.
Core CPI continues to be around 6%.
Impact of CPI
On account of higher than market expected CPI numbers, yields have inched up by 3bps - 4bps in the 10 year segment.
View going Ahead
Food inflation is seasonal in nature and hence expected to remain volatile.
We expect food inflation to decline over the period
This is an opportunity for investors who are currently sitting on the fence to invest in duration funds based on their risks appetite.
10 year G-Sec yields are expected to trade in range of 7.25 to 7.50 in short to medium term
Above views are of the author and not of the website kindly read disclaimer
