Dalal Street

The Indian Industrial production (IP) growth accelerated to 7.8%YoY in June: This compares with a growth of 2.2%YoY (revised downwards from 2.7% earlier) in May and 1.2%YoY in April 2009. While we were expecting industrial production to remain on the recovery path, the growth in June was much above market expectations and our expectations. Infact, the IP growth in June 2009 is highest since February 2008. While we expect sustained recovery in IP growth, the monthly growth numbers do tend to be volatile at times and there could be some retracement in IP growth over the next 1-2 months. (more…)

Despite the wholesale prices based inflation being in the negative zone for more than two months, India’s food prices continue to remain high. As per the latest figures, annual inflation was -1 .58 for the week ended July 25 [Old Data needs to be revamped, total disconnect with current World]. However, it has had little impact on prices of essential food items that continues to soar.

According to an analysis of 14 essential commodities collated by the ministry of consumer affairs, retail food prices have surged 32% in the country in the months of June-July compared to 18% in the corresponding period in 2008. However, WPI based inflation has been negative through most of this period. (more…)