Motilal Oswal - MOSL: ECOSCOPE-September inflation unchanged, August IIP surprises on the upside-Still some room for a rate cut

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Motilal Oswal

Nikhil Gupta

MOSL: ECOSCOPE-September inflation unchanged, August IIP surprises on the upside-Still some room for a rate cut

â€‹ECOSCOPE: September inflation unchanged, August IIP surprises on the upside; Still some room for a rate cut given downside risks to RBIâ€™s growth projections

CPI inflation remained unchanged MoM at 3.3% in September 2017. This was marginally higher than our expectation of 3.2%, but lower than market consensus of 3.6%.
Food inflation eased slightly to 1.3% in September 2017, while core inflation touched a six-month high of 4.6%. The uptick in core inflation was largely on account of a surge in housing inflation.
Furthermore, the index of industrial production (IIP) grew 4.3% YoY in August, exceeding our/consensus estimate of 2.4%/2.6%. A recovery was observed in manufacturing, along with a surge in mining activity and electricity generation.
We expect headline inflation for 2HFY18 to remain in line with the RBI's projections, but also see some downside risks. Hence, we believe that there is still some room to cut interest rates.

13/10/2017 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-September inflation unchanged, August IIP surprises on the upside-Still some room for a rate cut

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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