For the month of February 2012 IIP (Industrial Production) growth stood at 4.1% as against 6.8 % in January 2012. But the statistical department revised the number for January 2012 sharply from 6.8% to 1.1% mainly on account of wrong data forwarded by the Ministry of Consumer Affairs. Sugar production was wrongly taken at 13.41 million tonnes, as compared to 5.81 million tonnes.
With such poor IIP data, there is a an increased possibility now that RBI might cut rates soon by 25 basis points if not 50 basis points in April to boost confidence. That should provide floor to the market and we might see some rally in interest rate sensitives.
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