Economy & Policy◆ Mixed
Monsoon retreat: Dry skies, high temperatures return in north; south & northeast to get rain
· Business Today Mkts
Recent observations also show that rainfall remains concentrated mainly in the south, northeast, and parts of eastern India, while much of the rest of the country has remained dry. Weather systems active over these southern and northeastern sectors are triggering fresh spells of precipitation.
The analysis
This is a Monsoon / rural demand event. Rural demand is a large share of staples and two-wheeler volumes, and it tracks the monsoon and support prices with a lag of a quarter or two.