on growth and uptrend on inflation into the near term. So, no surprises from the IIP number and it is high time RBI gets into balancing act between growth and inflation.
ANJALI VERMA, ECONOMIST, MF GLOBAL, MUMBAI Typically, some kind of inventory buildup also happens in September, so the numbers are all the more disappointing.
On the other hand, CPI (consumer price inflation) continues to remain high. Going by RBI's guidance, the IIP numbers will now make a strong case for a rate cut to happen in January.
DEVEN CHOKSEY, MANAGING DIRECTOR, KR CHOKSEY SECURITIES, MUMBAI
Market is aware about it (muted IIP number) and therefore it will not get disturbed. To me, the biggest trigger would be policy decisions in winter session of parliament and rate easing by banks.
India's manufacturing growth inched up in October from September's 10-month low, supported by a pick up in new orders and an easing of price pressures.
India's services sector grew at its slowest pace in six months during October as weakness in the United States and Europe hurt orders and forced firms to hire fewer workers, suggesting the worst of the economic slump is not over yet.
The Reserve Bank of India may ease monetary policy as early as January, Governor Duvvuri Subbarao said, as price pressures ease in Asia's third-largest economy in the first part of next year on the back of slower growth.
The headline inflation likely accelerated to an 11-month high in October on costlier fuel and food, a headache for the government in a battle with the central bank over spending and high interest rates ahead of state elections.
The central bank left interest rates on hold last month but cut the cash reserve ratio for banks, defying pressure from the government to lower rates for the first time since April but also indicating it may ease policy in early 2013.