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MOSL: Morning India (14/November/19): 1. EcoScope (CPI inflation in line with expectations); 2. Pidilite Industries; 3. ABB; 4. Muthoot Finance; 5. Aurobindo Pharma; 6. Cadila Healthcare; 7. Sun TV Network; 8.

MOrning India (14/November/19): 1. EcoScope (CPI inflation in line with expectations); 2. Pidilite Industries; 3. ABB; 4. Muthoot Finance; 5. Aurobindo Pharma; 6. Cadila Healthcare; 7. Sun TV Network; 8. BHEL

 

Today’s top research theme

EcoScope: CPI inflation in line with expectations

• CPI-based inflation came in at 4.6% in Oct'19, in line with our estimate and slightly higher than consensus of 4.4%. Note that inflation stood at 4.0% in Sep'19 and 3.4% in Oct'18.
• Food inflation was at 7.8% in the month, higher than our estimate of 7.2% and 5.1% in Sep'19.
• Inflation in 'core services' decelerated to a 21-month low of 3.9% in Oct'19 from 4.8% a month ago, driven by lower inflation in all services, except recreation, wherein there was slight acceleration.
• We expect the Reserve Bank of India (RBI) to place more primacy on growth slowdown than higher inflation. Accordingly, we expect another rate cut in Dec'19. We continue expecting headline inflation to touch 5% around Dec'19-Jan'20 and stay put until Mar'20. Further, we expect core inflation to have bottomed out and pick up only gradually to 4% by Mar'20.

Piping hot news

No relief: DoT notice asks telcos to pay AGR dues in 3 months

The department of teleco-mmunications (DoT) on Wednesday sent out notices to all the telecom operators and internet service providers to pay their licence fee and spectrum usage charge dues to the government as per the definition of what constitutes adjusted gross revenue given by the Supreme Court in its order dated October 24.