View on IIP and CPI data by Upasna Bhardwaj, Economist, Kotak Mahindra Bank

"The moderation in inflation has expectedly been led largely by food inflation while core inflation remains muted amidst tepid demand. We expect the inflation trajectory to continue to moderate going ahead led by deflationary trends from falling crude oil prices, lower food prices and weak demand. With domestic and global growth expected to face downside risks from the spread of COVID-19 and deflationary forces emerging we see room for up to 50bps of rate cut by the MPC, with any further easing contingent on the evolving growth environment."

Source : Equity Bulls

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