Swinging Between Smiles and Snarls

The last one week has turned out to be bitter-sweet with peaks of joy and sorrow for market participants as inflation on the domestic front as well in the developed countries eased and came in below expectations. India’s retail inflation, which is measured by the Consumer Price Index (CPI), eased to an 11-month low of 5.88 per cent in November. The number has dropped within Reserve Bank of India’s tolerance band of 2-6 per cent. Meanwhile, the US annual CPI inflation declined to 7.1 per cent in November. On one hand the cooling of inflation put investors in a good mood.