A soaring sensex, better than expected advance tax collections and an increase in August auto sales would suggest the tensions of the sub-prime crisis are behind us, and that the near halving of industrial growth in July never happened. Obviously this is not true, though the July numbers looked unusual. Despite that, Apr-July growth remains impressive, especially in the case of capital goods "" August IIP numbers need to be carefully watched, to see a trend.Inflation is at a 5-year low but food and primary products remain a concern, especially given the monsoon's erratic patterns. FII flows are at an all-time high, and few expect the new RBI measures to help tame the rupee, especially given the dollar's weakness "" a sign of this is gold touching a 27-year high. Expect more NREGA-type election spending. CLICK HERE FOR TABLES & CHARTS
