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Economy Aug 9, 2012

China inflation cools; Nifty futures up ahead of IIP data

By Venky Vembu

Hong Kong: After yesterday's rollercoaster ride, when the Indian market gave away all of its intra-day gains, today promises to be another day of nervous trading. IIP data due out today, and corporate results numbers, could determine the mood for the day, but early trades on the Nifty futures point to a mildly positive start to the trading day.

As at 7.30 am IST, Nifty futures are up by about four-tenths of 1 percent, pretty much in line with sentiment across the Asia-Pacific region. Inflation data out of China gave some cause for cheer, indicating that there is room for Chinese policymakers to provide some kind of monetary stimulus, perhaps even lower rates. Yet more data is to come later today from China.

IIP data due out today, and corporate results numbers, could determine the mood for the day, but early trades on the Nifty futures point to a mildly positive start to the trading day.

Overnight, Wall Street had a fairly sedate day, with the leading indices ending marginally up but with no sign of verve.

Back home, the industrial production data due out today will likely point to weakness. Brokerages have been busy lowering India's GDPgrowth projections, citing - among other things - the weak monsoon and the failure of policy action to kick in.

But at the start, there's enough momentum from overseas to drive the market up.

by Venky Vembu

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