Drastically lower Oct IIP at -5.1%

Dear All,

Drastically lower Oct IIP at -5.1% led the benchmark 10 year GoI to again touch 8.50%. With an expected sub 9% inflation number and dovish tone from the RBI during the policy meeting this Friday, rate markets should continue the joy ride in the interim. However, one must not forget that there is a possibility of bad events lingering around the corner in the form of an escalating fiscal deficit due to unmet tax revenues and disinvestment numbers. Even Rupee depreciation and rising cost of Crude oil imports would burden Government Finances and hence the supply of GoI Bonds in the markets.

 

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Thanks and Regards 
 
Rohit Saxena

Phone No: 09899365905
Mail Id: simmi9sep@gmail.com

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