Wholesale inflation in India based on the Wholesale Price Index continued to stay in the negative zone for the third straight month in June, besides hitting a fresh multi-year low.
The consistent inflow of foreign portfolio funds, firm economic outlook, and moderation in inflation contributed to the latest bull run in Indian stocks. However, several analysts have been pointing out that any further rally from the current levels is unlikely as valuations are on the hi
SBI Research, in its latest 'Ecowrap' report, noted that a continued vigil on the evolving inflation outlook is warranted given the erratic progress of monsoon and its impact on Kharif crop sowing, and subsequently on overall food inflation.
The rise in inflation could partly be attributed to the current spurt in tomato prices across India. The rise in tomato prices is reported across the country, and not just limited to a particular region or geography. In key cities, it rose to as high as Rs 150-160 per kg. Besides vegetables,
Continuing with their bull run, Indian stock indices touched fresh highs Thursday morning and in the process, the benchmark Sensex breached the 66,000 mark.
Bucking the trend, retail inflation in India rose considerably in June to 4.81 per cent, largely due to a sharp spurt in vegetable prices. The inflation index for rural and urban was 4.72 per cent and 4.96 per cent, respectively.
Investors now await retail inflation data for June to be released later today. Analysts expect inflation may see an uptick due to the sharp rise in tomato and a relative spurt in pulses prices.
Indian stock indices rose marginally Monday morning but analysts pointed out that any further rally from the current levels is unlikely. Notably, Sensex seems to have anchored around 65,000 points.