The annual rate of inflation, based on the wholesale prices index (WPI) in India, inched up in the month of May to 7.55% as compared to 7.23% for the previous month, while it was lower than 9.56% during the corresponding month of the previous year. Though the rise in headline inflation was largely on the expected lines, the markets participants now are likely to turn their focus towards the Reserve Bank of India’s (RBI) mid quarter monetary policy review meeting on June 18.
According to the data released by the ministry of commerce and industry, the annual rate of inflation, based on monthly WPI, rose to 7.55% for the month of May, 2012 while build up inflation in the financial year so far was 1.80% compared to a buildup of 1.94% in the corresponding period of the previous year. The index for primary articles group, which has a weightage of 20.12% in overall WPI, rose 0.1 percent to 216.1 from 215.9 for the previous month largely because of 1.7 percent jump in index of non-food articles.
The index for fuel and power group with a weightage of 14.91% in WPI rose by 0.1 percent to 178.9 from 177.1 for the previous month due to higher prices of petrol (3%), bitumen (2%) and lubricants (1%). However, the prices of light diesel oil (4%) and furnace oil, aviation turbine fuel and naphtha (1% each) declined. The index for Manufactured Products, which has weight of almost 65% in the WPI, rose by 0.5 percent to 144.3 from 143.6 for the previous month.
After the disappointing industrial production data, market participants were eagerly awaiting the monthly WPI inflation data for May, which has come largely in line with consensus estimates. However, the investors focused more closely on the core inflation number, which has come in at 4.99%, slightly below the 5 percent threshold, and is likely to compel RBI to resort to monetary easing policies. Moreover, connoisseurs were also of the belief that the RBI would cut key interest rates irrespective of the headline inflation number, in order to bring Asia’s third largest economy, which hit a 9-year low of 5.3 percent in the quarter that ended in March, out of the doldrums.
MoneyWorks4Me rating and ranking of funds for SIP is available to subscribers only. Moneyworks4Me is not a rating and ranking agency, however it is required that users have a way of selecting funds and building a Portfolio. The method used by it are described below to enable users to understand the logic behind the rating and ranking Subscriber will find more details on this in the various content made available from time to time. In case you need more please write to besafe@moneyworks4Me.com
MoneyWorks4Me rates and ranks mutual funds based on the following data-driven system:
Funds ranking in screeners: Performance Consistency and Quality are two parameters used for ranking funds for SIP. The ranking as follows GG, GO, GR, OG, OO, OR, RG, RO and RR.
With the same color-coded funds, the one with the higher Average 3-year rolling returns (over 5 to 10 years), the number that appears in the Performance tag, ranks higher.
Here is the summary:
The third tag Upside Potential is not relevant for SIP. It is relevant for lumpsum investments in Mutual Funds.
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