Views of Mr. Jaikishan J Parmar (Research Analyst, Angel Broking):
"The Index of Industrial Production (IIP) for the month of April 2018 came in at 4.9% for the month of April. Within the overall gamut of IIP, mining and manufacturing grew at 5.1% and 5.2% respectively while electricity grew at a more modest rate of 2.1%.
What does this mean for the rate cycle in India. Firstly, with IIP back to near the 5% mark, the worries of the MPC that higher rates may curb IIP growth may be out of place. Also the IIP at 4.9% needs to be seen in the light of the the CPI inflation for May coming in at 4.87% which is largely in line with the MPC line of thinking that inflation may be headed higher post the Kharif season. That will only imply that further rate hikes from the MPC may be on the anvil."