A Season to Cheer

Last week most of us breathed a sigh of relief as the much-awaited news on the macroeconomic front indicated that retail inflation, measured by CPI, had finally eased to an 11-month low! CPI inflation for November fell to 5.9 percent, primarily led by easing of food prices. Though core inflation stayed sticky at 6.26 per cent, it raised hopes that the rate hike regime could slow down and take a pause going ahead. Coincidentally, even the inflation number from the US was encouraging and came lower than what the street was expecting. This augurs well for the entire equity market worldwide. However, caution still prevails.