Inflation- November Inflation at 9.11% vs 8.2 % (YoY ) Vs 10.0 % ( MoM)

· Fuel Group -15.48 Vs 14.79% (MoM)

· Manufacturing Products - 7.7% to 7.66% ( MoM)

· Primary articles – 8.53% Vs 11.4 ( MoM)

View- Inflation hopefully should continue to reduce on account of slowing growth and its consequent favorable impact on manufactured inflation. However, double-digit increase in MSPs, and approximately 20% depreciation in the rupee since August present an upside risk to inflation.

Economics- India’s industrial production contracted 5% YoY in October, 2011 as against a growth of 2% in September, 2011 on account of -

· Slowdown in the capex cycle mainly driven by government policy rather than monetary policy.

· Basic goods (5.9 vs 6.0), Intermediate goods (0.5 vs 11.4) , Consumer durables goods ( 4.5 Vs 14.2 ), Consumer non- durables ( 2.9 Vs 4.3 ) contracted in October, 2011

· Other indicators include decline in Excise collections (YoY) for two consecutive months & deceleration in export growth

2 of 2 File(s)

 FRONT PAGE 20111214.pdf

 Debt Market 9-Dec-11.pdf