Previous week was quite eventful for the markets. However, market sentiments remained weak due to lack of major cues. IIP numbers were also an issue for the markets. Infact markets are actually expecting or may want a lower IIP and a lower inflation number as most of the market participants want RBI to cut the interest rates in its upcoming policy review meet on April 17. This has triggered buying in banking stocks, which under performed late last month and early this month. We may probably see a rate cut of around 25 bps this time from the RBI. IIP for the month of February was at 4.1 per cent against earlier estimate of 6.8 per cent in January, weighed down by a contraction in consumer durables and consumer goods.

But the January figure of 6.8 per cent was revised down to 1.1 per cent. This was as a result of overestimating sugar production more than two times. It stood at 5.8 million tonne, but was reported at 13.41 million tonne initially. Economists and analysts were taken aback after this drastic revision. Sugar has just 1.5 per cent weight in the IIP and such a large revision could not just be because of wrong data pertaining to sugar, but may also be due to wrong data pertaining to other commodities as well.