India’s wholesale inflation stays in negative zone for 7th month

New Delhi [India], November 14 (ANI): Official data released on Tuesday indicated that through October, wholesale inflation in India, as measured by the Wholesale Price Index (WPI), remained in the negative for the seventh consecutive month.
In a press release by the Ministry of Commerce and Industry, the annual rate of inflation based on the All India Wholesale Price Index (WPI) recorded a notable decline, standing at (-) 0.52 per cent (Provisional) for October 2023, compared to (-) 0.26 per cent in September 2023.
This negative 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 (7.81 per cent) and food articles (1.33 per cent) but a decline in prices of crude petroleum & natural gas (-0.60 per cent).
Fuel and Power experienced a decrease of 2.47 per cent, driven by a decline in prices of electricity (-0.73 per cent) and an increase in prices of mineral oils (1.28 per cent).
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, read the press release.
Food index showed a 1.07 per cent inflation rate, including food articles and food products, saw varied trends across categories. Vegetables exhibited a significant decrease of -21.04 per cent, while fruits and milk experienced moderate increases.
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, read the press release.
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.
Investors are advised to stay informed about upcoming global concerns and data while keeping an eye on India's resilience in the face of potential volatility. (ANI)