Reaction to IIP Data for March 2013 - Mr. Harsh Pati Singhania, Director, JK Organisation

Recent data on Index of Industrial Production (IIP) is along the expected lines. Taken together with other data, it shows some positive signs (though still tentative) about industrial and overall economic growth. However, overall growth is still tardy, given that poor data for mining sector and consumer durables indicate that they will act as a constraint on industrial growth.

The data on Wholesale Price Index (WPI) which is expected early next week will provide better clarity and it is hoped that if WPI data is benign, it will add strength to RBI to take even more decisive measures towards the easing of monetary policy which will provide a boost to growth momentum.

Source : Equity Bulls

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