High inflation isn’t going away. New figures show the wholesale price index has eased last month, but not by a wide margin. In April, the index rose 8.66% on a year-on-year basis. The revised figure for March is 9.04%. Monday’s inflation numbers are higher than most expectations. Analyst polls pegged the WPI for April at about 8.50%. What’s more, the rise in petrol prices is all set to stoke inflation further in the coming months.
Not surprisingly, India’s finance minister has warned inflation could remain high. In a statement, Pranab Mukherjee said that besides the rise in fuel prices, increasing costs of raw materials would make goods more expensive. He added these factors could make it hard to achieve 9% growth this fiscal.
Also on Monday, Glenmark Pharmaceuticals has struck a lucrative deal. It has sold France’s Sanofi the rights to develop and commercialize a new formulation. The drug in question will be use to treat Crohn’s disease and multiple sclerosis. Sanofi will pay Glemark $50 million outright. Meanwhile, Glenmark CEO Glenn Saldanha says the agreement could generate a total of $613 dollars if the formulation meets some targets. Shares of Glenmark rocketed up 11.54% on the BSE to 305.85.
Indian markets tumbled on Monday in reaction to inflation figures and poor global cues. The Sensex plunged 186 points to 18,345. And the Nifty declined 46 to 5,499.