INSUBCONTINENT EXCLUSIVE:
Index heavyweights such as Infosys and Reliance Industries led gains on NiftyDomestic shares rose on Tuesday, after inflation rate plummeted
to an 18-month low, raising optimism that central bank could ease monetary policy next month, as nation faces a manufacturing slowdown and
weak growth in farm sector
Annual retail price inflation declined to 2.19 per cent in December, its lowest level since June 2017, as food prices fell for a third
straight month, government data showed on Monday.The outcome was lower than 2.33 per cent recorded in November and broadly in line with a
2.20 per cent increase forecast by economists in a Reuters poll.The Reserve Bank of India's (RBI) Monetary Policy Committee, which mainly
monitors retail inflation data and kept interest rates unchanged last month, will have a leeway to soften its monetary stance at its
February 7 meeting, economists said.The broader NSE Nifty was up 0.88 per cent at 10,832.10 as of 11:02 am, while benchmark BSE Sensex rose
0.88 per cent to 36,170.63."The macro numbers are showing a deceleration
Though some market participants are probably building it in that RBI stance could change," said Dhananjay Sinha, head-Institutional
Research, Economist and Strategy at Emkay Global Financial Services."There might be certain positivity in market, as data is coming on
backdrop of considerable uncertainty and a correction in last session
However, I expect that RBI will not cut rates soon because core inflation is still higher and decision will rather be on core inflation
number than headline inflation," Mr Sinha said.Index heavyweights such as Infosys and Reliance Industries led gains on Nifty, rising as much
as 3.2 and 2.8 per cent, respectively
Infosys shares hit their highest since October 8.Banks also cheered inflation relief with most of them trading in green
Yes Bank rose nearly 5 per cent to an over eight-week high, while HDFC Bank Ltd gained up to 0.6 per cent.IT stocks also firmed footing,
with Nifty IT index rising as much as 2.3 per cent
Wipro shares advanced 3.8 per cent in their best intraday percentage gain since December 13, after it said on Monday that a bonus share
