IIP, CPI data to dictate market trend this week
08/09/2014 12:20
The Indian stock market, which has soared to record highs in recent sessions, may continue to see positive trend this week supported by robust foreign fund inflows as growth picks up in Asia’s third biggest economy while the Modi government undertakes key reforms. Investors will be eying the industrial output data for the month of July,and August consumer inflation numbers to be released this week, which will be fresh indicators of the health of the economy that grew at the fastest clip in more than two years last quarter. Industrial production in India grew for the third month on the trot, up by 3.4 per cent in June 2014 from the same month a year ago. Industrial output may have grown for a fourth straight month in July, signaling further green shoots of recovery. Consumer inflation, the key gauge tracked by the RBI in its policy-setting process, will be keenly watched. Easing inflationary pressures will give the central bank room to cut interest rates, going forward. Consumer inflation accelerated to 7.96 per cent in July from 7.31 per cent in June as food prices spiked. The Supreme Court’s decision on Tuesday regarding the coal block allocation case would be crucial as a mass cancellation of all coal blocks allocated since 1992 may take heavy toll on the economy and weigh on Dalal Street. The European Central Bank’s (ECB) decision to cut interest rates to a record low and speculation that the US Federal Reserve may maintain interest rates at low levels for some time may support foreign fund inflows in emerging markets. The US economy added the fewest jobs this year as non-farm payrolls rose 142,000 in the month of August, dampening the prospects of earlier than expected monetary tightening by the Fed.
08/09/2014 12:20
The Indian stock market, which has soared to record highs in recent sessions, may continue to see positive trend this week supported by robust foreign fund inflows as growth picks up in Asia’s third biggest economy while the Modi government undertakes key reforms. Investors will be eying the industrial output data for the month of July,and August consumer inflation numbers to be released this week, which will be fresh indicators of the health of the economy that grew at the fastest clip in more than two years last quarter. Industrial production in India grew for the third month on the trot, up by 3.4 per cent in June 2014 from the same month a year ago. Industrial output may have grown for a fourth straight month in July, signaling further green shoots of recovery. Consumer inflation, the key gauge tracked by the RBI in its policy-setting process, will be keenly watched. Easing inflationary pressures will give the central bank room to cut interest rates, going forward. Consumer inflation accelerated to 7.96 per cent in July from 7.31 per cent in June as food prices spiked. The Supreme Court’s decision on Tuesday regarding the coal block allocation case would be crucial as a mass cancellation of all coal blocks allocated since 1992 may take heavy toll on the economy and weigh on Dalal Street. The European Central Bank’s (ECB) decision to cut interest rates to a record low and speculation that the US Federal Reserve may maintain interest rates at low levels for some time may support foreign fund inflows in emerging markets. The US economy added the fewest jobs this year as non-farm payrolls rose 142,000 in the month of August, dampening the prospects of earlier than expected monetary tightening by the Fed.
