The GDP growth in Q2-FY13 moderated to around 5.3% yoy. The growth in the manufacturing sub-sector was at 0.8% during the same period. The implication of the high borrowing costs has become evident, with industrial activity having come to almost a naught. While RBI has recognized the rising downside risk to growth, it may wait out till January-13 to consider the repo rate cut. Thus, the market would continue to remain driven by demand-supply equation for most of the Dec month and begin to factor in the policy implication by its end. The outcome of the looming fiscal clip in the US would also be a key event for the market.