Motilal Oswal - MOSL: ECOSCOPE-What can stop the RBI from cutting rates further now?-Inflation eased to record-low in April 2017

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Motilal Oswal

Nikhil Gupta

MOSL: ECOSCOPE-What can stop the RBI from cutting rates further now?-Inflation eased to record-low in April 2017

â€‹ECOSCOPE: What can stop the RBI from cutting rates further now?; Inflation eased to record-low in April 2017

In contrast to market consensus (and our expectation) of 3.3%, CPI inflation eased sharply from 3.9% YoY in March 2017 to 3% last month, marking the lowest level since the new series began in 2012.
Although IIP (with new base) grew decently in March 2017, a sharper-than-expected fall in CPI provides sufficient room for further rate cuts. With CPI expected to remain below 4% in 1HFY18, we believe the RBI will find it difficult to resist rate cuts. We would not be surprised if the rate cut happens as early as June 2017.
More importantly, the fall in inflation was broad-based. CPI excluding vegetables also fell to the lowest level since 2012, while core inflation eased from 5% in March to 4.4% in April.
The IIP series was presented with a new base of 2011-12 (updated from 2004-05), based on which industrial activity grew 2.7% YoY in March from 1.9% in the previous month.

15/05/2017 4 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-What can stop the RBI from cutting rates further now?-Inflation eased to record-low in April 2017

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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