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.
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.
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.
After a stellar rally over the past few weeks, markets faced some resistance over the past couple of sessions. At Tuesday opening bell, indices Sensex and Nifty traded marginally higher with a downside bias.
Wholesale inflation in India, based on the Wholesale Price Index, came in at 1.26 per cent in April versus 0.53 reported in March, official data from commerce ministry showed on Tuesday.
Indian stock indices opened marginally in the green Tuesday, extending the positive momentum from the previous session closing, primarily due to fresh buying after the latest dip.
India's retail inflation eased to 4.83 per cent in April, down from 4.85 per cent in March. However, consumer food price inflation surged to 8.70 per cent from 8.52 per cent last month, according to data from the Ministry of Statistics & Programme Implementation.
Morgan Stanley is firm on India's growth outlook given the support it is getting from the domestic demand. Citing high-frequency data, the global investment banking firm said it remains constructive on the growth outlook.
The annual rate of inflation based on all India Wholesale Price Index (WPI) numbers is 0.53 per cent (Provisional) for March 2024 (over March 2023), showed official data on Monday.
Wholesale inflation in India, based on the Wholesale Price Index, remained in positive territory for the fourth month after remaining in the negative zone for the seventh straight month until October.