Major U.S. stock indexes opened higher on Wednesday after data showed underlying consumer prices remained tepid in February, easing concerns about a spike in inflation
The wholesale price-based inflation slowed to 1.22 per cent in December on easing food prices, as per government data released on Thursday
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But MPC has reasons to not ignore headline inflation
A 'stagflation' is an undesirable phenomenon which has persistently high inflation with high unemployment and a stagnancy in demand
Prices of most vegetables climbed during the month as monsoon downpours delayed harvests and disrupted supplies.
According to Head of Research, Geojit Financial Services Ltd, continuous selling by FIIs remains a concern, but markets may trade positively in the short-term in anticipation of policy actions
Last week, the Sensex and Nifty plunged 1,111.82 points (3.43%) and 355.60 points (3.53%)