Pre-opening: Will strong IIP drive market to record highs

Growth engines seem to be firing once again in Indian economy as industrial ouput accelerated to 4.7 percent in the May, the highest in 19 months. Manufacturing and consumer durables also showed signs of a revival.
However, last week was worst in 15 months on Dalal Street as market succumbed to selling pressure. Major indices shed over 3.5 percent last week, the biggest weekly fall since March last year. In key macros today, WPI and CPI will be released today. According to a CNBC-TV18 poll, WPI for June is seen easing to 5.61 percent month-on-month. More eyes will be on CPI for June which is seen softening to 7.45 percent.
The confusion over the general anti-avoidance rules GAAR continues to irk investors. The market was hoping that the Budget will further defer the implementation of GAAR, but that was not to be. 
Minister of state for finance Nirmala Sitharaman stated that the rules as they stand will be applicable from FY15-16. The government clarified later saying that the new Finance Minister is yet to take a final decision.