Today, India’s Ministry of Commerce and Industry published May’s wholesale price inflation data. The inflation based on the wholesale price index dropped to 2.45% in May from 3.07% in April. In fact, it was almost half of the 4.78% seen in May 2018. Prices of manufactured products, primary articles, and fuel stayed soft while the price growth of food items accelerated in May.
While the government may love this data, and the Reserve Bank of India may continue its dovish stance because of it, softer price growth may indicate suppressed demand.
Indian indexes fell
Both India’s benchmark indexes fell today. The S&P BSE Sensex lost 0.73% to end the day at 39,452. This week, the index lost 0.41%. The NSE Nifty 50 lost 0.76% today to end the week 0.4% down.
Indian ETFs and stocks
Yesterday, the iShares MSCI India ETF (INDA) continued its slide on the NYSE Arca by losing 0.31%. The iShares India 50 ETF (INDY) lost 0.44%. The WisdomTree India Earnings Fund (EPI) was the biggest loser among the three with a 0.5% drop. Infosys (INFY) and Wipro (WIT), which are components of these ETFs, lost 0.28% and gained 1.55%, on the NYSE, respectively. With Infosys remaining under pressure on Indian indexes today, we might see a further drop in the prices of its ADRs.