Long time we have been tracking at the U.S Market, let us turn our attention to India, which has some good news. For one the rupee finished better than the entire week on Friday closing at 41.22/23. The Industrial growth this March has been good and has surpassed the expected level of 10.4% to 12.9%. But with the inflation on the rise it looks like the monetary policy might undergo a further tightening, probably after July. Of course the RBI has increased the lending rate to keep the infation under check. The Inflation rate is at 5.66%/yr as of now. Earlier the rupee appreciation has provided much ground for rejoice, the present political scenario also might mean a very comfortable situation for the rupee.
The reason for lower inflation rate might be due to two reasons, one because the agri-products like production of wheat was higher and also the Sugar prices was on decline. But still the inflation might be high as compared to 3.90 percent which India had achieved about an Year ago Also to keep the inflation in check the Reserve Bank of India had increased the Lending Rates to Banks.