Factors - Market Will Take Cues from Going Forward

Monsoon this year

India's monsoon has been 21% above average so far this season. A
normal monsoon may lift farm production, which accounts for a fifth of
the economy, and cool the nation's fastest inflation rate in 13 years.

Developments on the Political Front

The Indian government is seeking support from the Samajwadi Party
(SP), a key regional party in Uttar Pradesh to retain power at a time
when Left parties are on the verge of withdrawing support. SP party
leaders on Friday, 4 July 2008, met Prime Minister Manmohan Singh and
hinted that they would approve the deal.

Communist parties on Friday, 4 July 2008, said the government must
tell them by Monday, 7 July 2008, if it plans to press ahead with the
next step in a controversial civilian nuclear deal with the United
States. Left parties have threatened to end their backing for the
government if it seeks approval for the deal from the International
Atomic Energy Agency (IAEA), the next international move needed to
operationalise the pact.

Selling by Foreign Institutional Investors

Sustained selling of Indian stocks by foreign institutional
investors (FIIs) has dented market sentiment. FII outflow outflow in
calendar year 2008 totaled Rs 26571 crore (till 3 July 2008). Now the
next path would also be decided by how FII reacts to current situation.

High inflation, record high global crude oil prices and rising interest rates are near term threats to market growth.

We all are eyeing on Infosys starting June 2008 quarter earnings season on Friday, 11 July 2008.