The government released mixed set of numbers for the Indian economy on Thursday. On one hand, while Inflation continued its descent, the IIP numbers continued to register de-growth.
Inflation fell for the sixth consecutive week to 2.43%, the lowest in over six years. The wholesale price (WPI) based inflation is now at levels seen in June 2002.
We present reactions and analysis on the two sets of numbers from top brokerage houses across the country.
We expect Inflation to continue to head lower in the coming weeks aided primarily by the high base effect of last year.
On the other hand, Industrial production (IIP) declined by 0.5% in January 2009, contracting for the second month in a row in spite of the stimulus packages announced by the government to ward off the impact of the global recession.
Industrial output grew by 6.2% in the same month a year ago. This is the third time in this fiscal that industrial growth has turned negative.
Going forward, we expect the IIP number to improve hereon as economic activity improves.
Click here to read reactions from Confederation of Indian Industry (CII)
Click here to read analysis by Ambit Capital
Click here to read analysis by Anand Rathi Securities