The Preview of the Week: Economic Traction

The Week began with more weakness than, expected. With INFOSYS getting Thumps down with sober result and sombre guidance, While, TCS stole the Spot light. The result are indicating Wage Pressures, but the Pipe Line seems strong and order Mix strategical. The Equity market remained sideways, While Bombay Blast dampened the Feed markets, like Gold and Diamond, . Mumbai did not work fully, for Blast and Heavy rains.

The Political stage remained dormant. The Government remained on back foot. Indian Government shows not only Lack Leadership and very few good people, conducting the affairs. The Lipstick Service to Ministerial Changes were Like Cheap Parlour. Did more dis service.
The Inflation remains entrenched. Weather in North East states from Bihar to Assam remains in perilous State.
All rivers Bramhaputra, Ganga,  remain much above ' Danger Level '

International Event kept a tight grip on the FII's. Google put all on wrong foot and rose more then 10%, nothing much was expected from JPmorgan, Citi Bank. Only the lending in US seems to be 'stifled'
 FOMC minutes and Ben Bernakes' semi annual Testimony worked as " Carrot/ stick " ( See Post )
European Stress Test added more stress and Commodities remained firmed. US data was good, barring Consumer Confidence remained low.

As per, prognosis Standard & Poors and Moody's raised " Flags" about debt Ceiling and Political theatre remained fluid. President Obama took the Public route to generate pressure on the Republicans, without effects. The warning memos were issued By Geitner and Bernanke.

Any de- rating of US Long Term debt would cause a great volatility across the Globe and banks, Pension Funds, mutual funds, and Many countries may find hard to adjust Folios.

Is this a New Reset...?

Indian Drought in Amidst rainy season.-25% short : Weekly Bulliten by Indian MET

Reuters) - India's key monsoon rains were 25 percent below normal in the week to July 6, a sharp reversal from the 10 percent above average rains in the previous week, the weather office said on Thursday, reflecting a predicted lull in the monsoon's progress.

The rainfall was weakest in the rice, cotton and oilseeds growing areas of east, west and central India.

"Weak conditions will continue even in the next week, but there could be a revival in rainfall over eastern India," a source in the weather office said.

Overall, India has forecast the monsoon will be slightly below normal.

July is the key planting month during the June-September monsoon, when rainfall distribution over major crop regions is important for sowing crops.

India aims to produce a record 245 million tonnes of grains in the crop year that started on July 1, a rise of about 3.9 percent over the previous year.

Last year, rainfall was two percent above normal in the week to July 7 after a weak start in June, but rains picked up in the remaining period of the four-month monsoon and ended as normal.

In the past week, rains over the rice, cane and cotton areas of Andhra Pradesh were 23-62 percent above normal, but rains over the soybean areas of central and western were poor.

A well distributed monsoon would boost farm production and help ease high food inflation that stood at 7.6 percent in the year to June 25.

Rainfall During The Week (For the week ending on 6^th July, 2011)

Rainfall was excess/normal in 16 deficient/scanty in 20 out of 36 meteorological sub-divisions. (Actual: 44.7 mm, Normal: 59.7 mm and Departure: -25%).

Cumulative Seasonal Rainfall (1^st June to 6^th July, 2011)

Rainfall was excess/normal in 27 and deficient/scanty in 9 out of 36 meteorological sub-divisions. (Actual: 217.6 mm, Normal: 215.1 mm and Departure: +1%).

The sub-divisionwise weekly and seasonal rainfall distribution is presented in enclosed map.

A comparative data of cumulative seasonal rainfall during the corresponding period in the last five years is given in Table-3.