All eyes are on macro data due to be released on Thursday. Retail inflation for February is likely to soften, while index of industrial production (IIP) for January is expected to be higher as compared to November.

IIP is expected to come in at about 0.6 percent against 0.3 percent in December. Coal production improved to 8.1 percent, electricity was up around 2.8 percent after five months of decline and manufacturing PMI improved to around 55.3 in January versus 52.7 on a MoM basis.

Consumer price index (CPI) will assess the amount of room the Reserve Bank of India (RBI) has in order to act in terms of policy perhaps even before the April monetary policy committee meeting. CPI is estimated at around 6.82 percent versus 7.6 percent in January.

The core inflation is expected to be sticky at around 4.2 percent.

February CPI expected to be soften, IIP expected to probably see a similar figure probably in the positive terrain.

First Published:Mar 12, 2020 9:10 AM IST