If the pattern over the last three months is going to continue, the likelihood is that both indices will register inflation rates close to current levels over the next few months.
Deflation masked the rise in food inflation to a 5-month high.
After Urjit Patel's appointment as RBI governor-designate, the bond market witnessed a sell-off, as it became evident that there won't be any significant change in stance
Zero inflation will pave way for rate cuts in the next RBI policy.
This development can strengthen the case for interest rate cut by the RBI.
The Sensex ended 229 points down at 27,602 and the Nifty ended down 63 points at 8,293.
Samvat 2072: Auto sector could see faster recovery
If credit is not going to flow in response to a policy rate cut, while inflationary pressures, as well as expectations, may be stoked, a rate cut may not be appropriate at this point
It is the six per cent target RBI is more concerned about.
The Indian economy's election-year syndrome cannot be ignored, says A K Bhattacharya.
Historically, the IIP performance has shown little or no correlation to corporate performances.
The price of ensuring no disruption after rolling out the GST seems to be an imperfect GST with many relaxations in its compliance norms, says A K Bhattacharya.
Food prices are also expected to move up due to the poor monsoons.
Here are the key decisions announced by the Reserve Bank of India on Thursday.
According to the final recommendations of an expert committee, the weight of primary (unprocessed) food items will go down by 0.5-1.0 percentage points in the new series compared to the current one
The latest macro-data from India is disquieting
The S&P BSE Sensex dropped 1 points to end at 26,396 and the Nifty50 slipped 2 points to end at 8,109.
CPI-based inflation on a (year-on-year) basis has come down from 8.59 per cent in April 2014 to 7.80 per cent in August 2014.
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As many as nine respondents said RBI would hold the repo rate at 8% till March-end, 2015
Also says PSU banks divestment to be considered after improvement in governance
GDP growth in November is the second-highest since January 2012 when it had expanded 5.7%.
Growth in India's gross domestic product for the June quarter of 2013-14, as well as for the entire 2014-15, was 4.7%.
Oil and select auto heavyweights bore the brunt of selling pressure; ONGC, RIL, Tata Motors, M&M key losers.
What differentiates Rajan from his predecessors is his proactive steps in anticipating a problem and coming up with out-of-the-box solutions
In a major sign of transformation of manufacturing-dominated Chinese economy, annual output of its service sector may exceed that of the manufacturing sector for the first time ever in 2013, an expert said.
This was the near-unanimous replies of 10 market participants.
Prime Minister's Economic Advisory Council (PMEAC) Chairman C Rangarajan may have found the Reserve Bank of India (RBI)'s inflation projections on the higher side, but independent experts agree with the central bank and expect both wholesale and retail prices to remain high.
RBI recently cut repo by 0.25 percentage point, taking the rate to 7.25 per cent in three reductions since January.
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Notable losers were ONGC, Axis Bank, ITC, SBI, ICICI Bank, NTPC, Hero Motocorp, Sun Pharma and Bharti Airtel who fell by up to 2.80 per cent.
The Sensex and the Nifty witnessed biggest one day loss in percentage terms since June 24
Voting for the 2014 general elections will begin in April and it is expected Budget 2014-15 will be presented in June.
The economists, who were surveyed, also felt it will take time for banks to make any further reduction in deposit rates
'Retail investors have been selling since the Budget and Foreign Portfolio Investors started selling.' 'Thus far, domestic institutions have picked up the slack, buying enough to keep the major indices from falling off a cliff.' 'However, there has been carnage in smaller stocks and the financial sector has been hit much harder than the major market indices,' points out Devangshu Datta.
WPI inflation even breached psychological level of 0% in Nov.
Lack of political consensus on economic reforms a key concern.
Inflation is down, growth is headed for recovery. RIL and subsidiary Jio are on an upswing. However, stressed loans and impending job losses are the dark clouds, says Devangshu Datta.
Managing Brexit, inflation and banking reforms, along with the political environment, will be tough.
The Reserve Bank has taken some steps to shore up the domestic currency.
Participants are eyeing the Bihar elections.
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