Motilal Oswal - MOSL: ECOSCOPE-Macroeconomic data set the stage for a rate cut-But a few reasons exist for RBI to remain cautious

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Motilal Oswal

Nikhil Gupta

MOSL: ECOSCOPE-Macroeconomic data set the stage for a rate cut-But a few reasons exist for RBI to remain cautious

â€‹ECOSCOPE: Macroeconomic data set the stage for a rate cut; But a few reasons exist for RBI to remain cautious

Like in the past few months, CPI inflation eased more than expected to 1.5% YoY in June 2017, lower than market consensus of 1.7% and our expectation of 1.6%. Although food prices (food price index down more than 2%) were the key driver of lower inflation, we note that the deceleration was broad-based.
Further, the index of industrial production (IIP) grew 1.7% YoY in May, lower than our estimate of 2.4%, but higher than market consensus of 1.5%. It was driven primarily by a decline in mining activities.
Macroeconomic data provide sufficient room to the monetary authority to cut policy rates next month. However, the RBI's June minutes do not provide sufficient confidence to us. As we pointed out in our last report, higher growth in minimum support prices (MSPs), along with farm loan waivers totaling more than INR1,000b, may prompt the RBI to wait for some more time.

13/07/2017 6 EN

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Motilal Oswal

Motilal Oswal Financial Services Ltd. is a reputed name in Financial Services and Online Trading with group companies providing services such as Private Wealth Management, Retail Broking and Distribution, Institutional Broking, Asset Management, Investment Banking, Private Equity, Commodity Broking, Currency Broking, Principal Strategies & Home Finance.

Motilal Oswal Securities is a group company of Motilal Oswal Financial Service Limited which started as a stock trading company and has blossomed into well diversified firm offering a range of financial products and services. Motilal Oswal has built a reputation as the source for best stock trading company and this has taken a wealth of experience, knowledge and expertise, constantly working in tandem, over the years.

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Nikhil Gupta

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MOSL: ECOSCOPE-Macroeconomic data set the stage for a rate cut-But a few reasons exist for RBI to remain cautious

MOSL : HOME FIRST FINANCE COMPANY: Earnings in-line with sustained improvement in asset quality

MOSL : SHOPPERS STOP: Ticking the right boxes

MOSL : ERIS LIFESCIENCES: Enhanced efforts toward product launch-related activities

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