The prospects for Indian agriculture are brightening with the early landfall of the southwest monsoon, highlights the monthly bulletin released by the Reserve Bank of India (RBI) on Wednesday.
Wholesale food prices have skyrocketed month-on-month in May, with official data showing that the Whole Price Index for food rising from 5.52 per cent in April to 7.40 per cent in May.
Wholesale inflation in India, based on the Wholesale Price Index, came in at 2.61 per cent in May versus 1.26 reported in April, official data from the commerce ministry showed on Friday.
Annual retail inflation in May was at a 12-month low of 4.75 per cent, marginally down from 4.83 per cent in April. The retail inflation or Consumer Price Index, in December last year was 5.7 per cent, and since has been moderating.
Indian stock indices touched their fresh lifetime highs briefly after the opening bell Thursday, continuing their uptrend from the previous session, primarily due to a moderation in inflation in May - both in India and the US. Other domestic economic parameters too are robust.
Indian stock indices were largely steady at the opening bell Tuesday, with a downward slant. Indices Sensex and Nifty were a shy above their yesterday's closing at the time of filing this report.
The report, authored by Soumya Kanti Ghosh, SBI's Group Chief Economic Adviser, expects first repo rate cut in October meeting. The repo rate is the rate of interest at which the RBI lends to other banks.
S&P Global Market Intelligence asserts that weak private consumption in India remains the largest concern, with rural demand in particular still "straggling to catch up", at a time when the country's overall growth remains strong.
Growth in India, which already is strong and surging, may become more broad-based across both on the consumer and business spending side, indicated Morgan Stanley.
S&P Global Ratings on Wednesday revised its rating outlook on India to positive from stable, and added that it expects continuity in economic reforms and fiscal policies regardless of the Lok Sabha election outcome.