Diesel price cut to reduce WPI by 20bp in next two months: Motilal Oswal

Written by Reuters | Updated: Oct 20 2014, 17:57pm hrs
Diesel deregulation would result in a sharp fall in diesel inflation to 4 per cent from 13 per cent by December 2014, says Motilal Oswal.

This paves the way for a sharper decline in inflation indicators, ahead of expectations.

Adds, RBI may cut rates 2-3 quarters ahead of consensus expectations on the back of these developments.

Says government would be able to limit the oil subsidy bill within the budgetary target of 634 billion rupees.

Adds Indian government's fiscal deficit target of 4.1 per cent is now more credible.