Views on IIP data for November 2013 - Angel Broking

Views of Ms. Bhupali Gursale ( Economist - Angel Broking) on IIP data for November 2013: "The continued weakness in consumption demand in the economy is reflected in the dismal industrial production data as well as decline in non oil, non gold imports. The steep contraction in production of consumer durables during November 2013 by 21.5% has weighed substantially on the overall IIP print. We believe that IIP for FY2014 as a whole is likely to remain tepid, reporting growth of 0.5-1.0% over a year ago. In view of continuing sluggishness in growth and with food inflation expected to moderate and bring some respite from elevated headline WPI and CPI inflation prints, we expect the RBI to hold monetary policy rates during its January 28 policy review."

Source : Equity Bulls

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