Data showing easing inflation and an optimistic start to October-December earnings could just be the recipe for Indian shares to bounce back from a weak start in 2014.
India will post wholesale and consumer price data on Tuesday, which will help determine whether the Reserve Bank of India (RBI) will resume raising interest rates after tightening monetary policy by a total of 0.50 per cent over September and October.
India's inflation rate is expected to ease in December to 7.00 per cent from the 14-month high of 7.52 per cent in November helped by waning food prices, a Reuters poll of 22 economists showed. (Read more)
Data late on Friday showed industrial output unexpectedly fell an annual 2.1 per cent in November, after contracting a revised 1.6 per cent in October, the data showed. (Read more)
After an optimistic start to October-December earnings season by Infosys, traders expect its peers Tata Consultancy Services Ltd and HCL Technologies Ltd earnings to also beat estimates next week.
Index heavyweights ITC Ltd and Reliance Industries Ltd will also post results in the second half of the coming week giving clues on where India's stalled investment cycle is heading.
Copyright @ Thomson Reuters 2013
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