Wholesale Inflation in India Decreases for Seventh Consecutive Month
New Delhi, India, November 14 (ANI) – The official data released on Tuesday revealed that wholesale inflation in India, as measured the Wholesale Price Index (WPI), has remained in the negative for the seventh consecutive month. According to a press release the Ministry of Commerce and Industry, the annual rate of inflation based on the All India Wholesale Price Index (WPI) stood at (-) 0.52 per cent (Provisional) for October 2023, compared to (-) 0.26 per cent in September 2023.
This decline in inflation is primarily attributed to a fall in prices across various sectors including chemicals, electricity, textiles, basic metals, food products, paper, and paper products.
Primary articles witnessed a 1.82 per cent inflation rate, with notable increases in prices of minerals and food articles, but a decline in prices of crude petroleum & natural gas. Fuel and Power experienced a decrease of 2.47 per cent, driven a decline in prices of electricity and an increase in prices of mineral oils.
Manufactured products maintained a negative inflation rate of 1.13 per cent, with diverse trends observed in different industries. Notable increases were seen in food products, chemicals, and pharmaceuticals, while basic metals and fabricated metal products faced declines, as per the press release.
Despite the negative inflation trend, the Ministry remains optimistic about the overall outlook for the Indian equity market, emphasizing robust fundamentals and domestic liquidity. The decline in Foreign Institutional Investors’ (FIIs) holdings is attributed to global economic conditions, rising capital costs, and domestic political considerations, the press release stated.
The press release anticipates continued volatility in the global market, but India is expected to outperform. Investors are encouraged to seize opportunities, especially in sectors like IT, Banking, Pharma, FMCG, Petrochemicals, and Metals. The release suggests a medium-term strategy for accumulating quality mid and small-cap stocks and advises investors to stay informed about upcoming global concerns and data while keeping an eye on India’s resilience in the face of potential volatility.