In spite of better than expected numbers from CPI inflation and index of industrial production (IIP), market did not cheer but consolidated near all time high.
Now the risk shifts to RBI meet for a possibility to cut interest rate.
As per the statement from RBI, there is little possibility to lower rates as they are likely to wait to understand the trajectory in the near-term.
Added the hike in excise duty for fuels is taken negatively by the market.
Also Q2FY15 numbers are largely in line with estimates and does not provide any possibility to increase earnings growth for FY15E.
These factors could make further market to consolidate in the near term and will now focus on winter session as a key event.
By Vinod Nair, Head-Fundamental Research, Geojit BNP Paribas Financial Services Ltd