The Mumbai Sensex dipped in trading today (February 15th), as Indian inflation slowed to below seven per cent for the first time in over three years.
This has comforted policymakers and allowed for more breathing space for growth-supportive steps in an economy due to expand at its weakest pace in ten years.
India's main inflation gauge, the whole sale price index, rose by 6.6 per cent year on year in January compared to December 2012's 7.1 per cent.
This reading was much better than the median estimate of 6.9 per cent given by a poll of economists.
India's government also left the November rate of inflation unchanged – a comforting departure from the recent trend of upward revisions.
The easing in inflation would also add to demand from industry lobby groups for the central bank to lower monetary policy rates.
At close of play today, the Mumbai Sensex was flat at 19468.1 points, a slight decline of 29 points.
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