MARKET EYE WEEKAHEAD-India inflation data key to debt/FX

Fri Jan 11, 2013 3:49pm IST

* December headline inflation will be a key indicator for Indian
debt/FX ahead of the Reserve Bank of India's policy review on
Jan. 29.
* Wholesale prices are expected to have risen 7.40
percent from a year ago, a Reuters poll showed. 
* Any reading below 7.20-7.25 percent should cement the case for
at least a 25 basis points rate cut after weak November factory
data.
* The 10-year yield is likely to trade in a
7.80-7.90 percent band next week. The yield has slumped 30 bps
at Friday's low in 15 sessions on expectations of rate cuts.
* Traders are also looking for a potential announcement on a
widely expected hike in fuel prices after the oil ministry sent
a proposal to the cabinet this week. 
* An announcement may not have too much impact given it has been
long awaited.
* For the rupee, investors will also be watching
capital inflows after foreign institutional investors bought a
net $1.56 billion in equities so far this month.
* Shares could be volatile as major companies such as Reliance
Industries Ltd and Tata Consultancy Services 
are due to report results.
    
    KEY FACTORS TO WATCH
Mon.: Dec wholesale priced inflation, consumer price inflation 
Fri.: Weekly forex data and bank credit data

 (subhadip.sircar@thomsonreuters.com/;
subhadip.sircar.thomsonreuters.com@reuters.net)
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

REUTERS SHOWCASE

HCL Tech Results

HCL Tech Results

Q4 dollar revenue disappoints investors, shares fall  Full Article 

Fed Policy

Fed Policy

Fed presses forward with bond buying, cites uptick in inflation.  Full Article 

Q2 Profit Slips

Q2 Profit Slips

Samsung sees tough second half  Full Article 

Chinese Economy

Chinese Economy

China should set lower 2015 GDP growth target of 6.5-7 percent - IMF  Full Article 

Default Imminent

Default Imminent

Argentina fails to reach debt agreement   Full Article 

Economy Reboots

Economy Reboots

U.S. economy back on track with strong second-quarter rebound  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device.  Full Coverage