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MOrning India (13/March/20): 1. EcoScope (CPI inflation cools off; IIP at six-month high); 2. Healthcare (Volume growth revives; Sustainability remains key monitorable)

Morning India (13/March/20):

Today’s top research idea
EcoScope: CPI inflation cools off; IIP at six-month high

** CPI-based retail inflation cooled off to 6.6% in Feb'20 v/s 7.6% in Jan'20 after trending higher for six months due to lower food inflation. CPI inflation in food came in at 10.8% in Feb'20 v/s 13.6% in Jan'20.

** Within food, vegetables - the main factor driving inflation higher - inflation eased to 31.6% in Feb'20 from 50.0% a month ago.

** Index of Industrial Production (IIP) rose 2.0% YoY in Jan'20 versus +0.1% YoY a month ago and +1.6% YoY in Jan'19.

** The rise in industrial production was entirely attributable to higher manufacturing activity. the combination of moderating inflation and better growth imply that the RBI may not cut policy rates next month in its first monetary policy meeting for FY21.

 Piping hot news
SBI to invest ₹7,250 cr in Yes Bank as part of RBI rescue plan
State Bank of India (SBI) on Thursday approved an investment of ₹7,250 crore in Yes Bank Ltd, as part of a rescue plan for the troubled lender. The executive committee of the board of India’s largest lender approved the purchase of 7.25 billion equity shares of Yes Bank at ₹10 apiece, subject to regulatory approval. SBI’s stake in Yes Bank will remain within 49% of the paid-up capital of the bank, the state-run lender told stock exchanges.