In the vein of serious statistics collected and regrouped by the nations Economists, here is the latest symptom of the double digit interest rate infection..With global commodities holding,raw material inputs keep moving up higher as Primary Articles for WPI inflation crossed 12.5%.

Food group ran up 100 points from 8.06% to 9.02% while fuel is holding at 11.46% Scary figures but soon the lull in global crude and commodiies should make is way into thisese numbers as second half of the year might perform well for the Economy as per RBI Governor Duvvoori Rao's expectations

As mentioned in the other posts of the day and in May, India and China would continue raising rates for some months to come thought he reasons are fundamentally different. Also, much like QE2 went mostly into a equity boom preceding good results, the FIIs are here and ready to take the indices north in line with India's overall outperformance even as profitability will remain hurt by these hot numbers from the WPI baskets and transfer to manufactured goods is likely unavoidable. 

Though, anyone maintaining shorts right now can roll on for a couple of months without being pushed out, the markets remain dull waiting for the inevitable northward move after just 4-5 sessions of uncertainty in which we have all recovered our growth expectations not to miss the opportunity to invest in the India dream.

Posted via email from The investment blog on Post