On the back of strong foreign investor flows, the stock market barometer BSE Sensex today jumped more than 1 per cent to log new lifetime high, while the rupee appreciated 24 paise to trade at 60.65 against the US dollar.
The report said in the recent months policy makers as well as the private sector have made some efforts to improve productivity.
Reversing a six month declining trend, WPI inflation moved up marginally to 0.11 per cent in December mainly because of increase in prices of food items.
Of the 52 economists polled, 50 expect the policy repo rate to remain at 7.25 per cent, and 47 of 48 respondents see the cash reserve ratio, or the portion of deposits banks have to maintain with the central bank, unchanged at 4 per cent.
In Delhi, petrol price down Rs 2.5 a litre, diesel by Rs 2.25
Rajan had cautioned against any deviation from the fiscal discipline path.
The WPI has been in the negative zone since November.
In New York, the dollar fell against the British pound on Wednesday after the Bank of England raised its projections for UK growth in 2014. However, analysts warned that gains against the dollar could be limited.
According to the report, going forward, inflationary pressures in some items may increase due to slight improvement in demand.
Foreign fund flows into and out of the domestic sharemarket will continue to be key for the rupee's fortunes.
India's economic growth rate is expected to be at least 6 per cent in the 2013-14 fiscal, Prime Minister's Economic Advisory Council (PMEAC) Chairman C Rangarajan said.
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The rupee resumed slightly lower at 62.05 per dollar as against the last weekend's level of 62.04 at the Interbank Foreign Exchange market. It recovered to 61.88 per dollar before quoting 61.93 at 1045 hours.
In the retail markets, rates have fallen to Rs 30-35 a kg from Rs 100-level.
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Although the survey pointed to the softness in demand leveling off, a complete recovery is still some way off.
Forex dealers said besides increased selling of the American currency by exporters and banks, the dollar's weakness against other currencies overseas also supported the rupee, but a lower opening in the domestic equity market limited the rise.
Costlier food items, including vegetables, pushed the October wholesale inflation to 7 per cent, the highest in the current financial year.
The RBI's macroeconomic report released after the close of markets said upside risks to food inflation remain and that it expects the retail and wholesale price inflation to remain above comfort levels.
The Reserve Bank had kept policy rate unchanged in its review on April 7.
Across the board, demand would appear to be slacker than it should be if we are headed for a healthy recovery.
Bidders have to deposit a security fee of Rs 25 crore as well as minimum guarantee fee.
Food articles inflation at 8.43% compared to 8.14% m-o-m.
Prices of the kitchen staple in Azadpur mandi, Asia's largest wholesale market, were ruling at Rs 60 per kg today as supplies were below normal.
The country saw two straight years of deficient monsoons.
According to the global financial services major, since the last RBI policy meet, data suggest accelerating growth and surprisingly mild inflation, both at the core and headline level.
Some say the MPC will raise the rate, while others are of the view that there is already de facto interest rate tightening through rising bond yields, which might prompt the central bank to go for a pause.
Jaitley said inflation has been under control for long and is likely to remain so on the back of good monsoon and unlikely spike in oil prices.
Parts of Uttar Pradesh, Haryana, and Punjab have also been impacted.
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India's economy grew 4.7 per cent in 2013-14, following an expansion of 4.5 per cent in 2012-13. In the fourth quarter of 2013-14, growth remained subdued at 4.6 per cent, mainly due to a decline in manufacturing and mining output.
Indian factory growth likely slowed in Jan, inflation to stay muted.
On the reduction in the SLR ratio, he said it was a signal from the point of view of long-term reforms.
The chief statistician feels there should be a rebound after companies integrate and adopt the GST system
'Implementation of GST would lead to the growth story of India'.
Inflation in pulses, vegetables and cereals was higher in Jan.
RBI Governor Raghuram Rajan on Friday said keeping inflation low is the key task for sustainable economic growth of the country.
Retail inflation in March inched up to 8.31 per cent from 8.03 in February, mainly on account of a rise in fruit and vegetable prices.
Fourth quarter earnings of blue-chips such as Infosys, TCS, Wipro, RIL and inflation data for March will dictate the trend on the bourses in a holiday-shortened week ahead, experts said.
NTPC, Sun Pharma Coal India and Asian Paints were among top losers on BSE Sensex
According to the global research firm, though a sharp fall in WPI inflation and negative growth in Industrial production is exerting pressure on the RBI to cut rates, the quantum of rate cut will be more important than the timing.
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