Happy Thursdays! Inflation inches down, Europe cracks

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Not much going on for this report thought as the Markets are sstill at 5500-5600 not looking to move much higher. Inflation on Food for the week ended July 16 reported a fairly reasonable 7.33%, and even Primary Articles tclose to breaking lower from double digits at 10.49% but with Fuel inflation stayign on at 12% worries still continue. Bank Policy Tuesday rocked some guns with most Economists sinking their teeth into the policy after the deed, while Banks and Autos spread losses alongwith the newly crowned real estate sector.

The Debt deal drama in US is still on and  the weak dollar putting paid to most results in Europe while US earnings look bright and sunny, even the banks reporting an ok result for each

European Banks may have cleared stress tests but all hell has broken loose otherwise, most reporting half the earnings from last year and Credit Suisse, and HSBC announcing fresh job cuts today ( 2000 and 10000 respectively) In fact except for Shell the European Earnings today from the big companies also pointed to a very mosrose economic situation for the continent and the British banks reporting on Friday already a lost case.  Bellwether Siemens and the largest Chemicals maker BASF reported subdued earnings while unlikely European Pharma Giants Sanofi and Astra Zeneca reporting better than previous results. All these would vbe reviewed in dsue course at advantages.us but the Indian pharma midca story looked like it was getting better with Glenmark and Lupin reporting good results as molecule approvals for $1-2 bln drugs keep coming through and each adds poential sales of $100 mln to each company

Returning to India, with bank rates in a new orbit in a week after day before yesterday’s policy announcement, prospects for growth have dimmed up and its time to be cautious though India remains insulated from most of the global currency troubles outside establishing a steady rate for the Rupee and a healthy exports target.

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