Because of couple days' net problem in college I wasn't able to post anything. So I thought of posting some business developments happened in couple of days.
On Monday, acting PM & FM Mr. Pranab Mukherjee presented a interim budget or vote on account. Due to present economic conditions media created lot of hype for third fiscal stimulus in terms tax reliefs & sector oriented boosts. Even market was also expecting that. But looking at fiscal deficit & constitutional restriction Pranab Mukherjee didn't do anything apart from reading out about their 5 years progress. But I think he would have provided some relief to sectors which are really in bad shape now.
Dow Jones is about to breach 7500 levels. Till now 7500 levels was considered as major support which it attained in 2002. If it falls below that, then it will be very difficult for the rest of world indices hold on to their major support levels.
Today in Asian Markets, oil was trading at $ 34-35/barrel levels. Due to heavy negative news about the world economy oil is falling. I think it will be settled in the range of $ 25-35/barrel for the time being.
As all other markets are in the hands of bear, gold is glittering very sharply. Today it touched Rs. 15,500 levels. Its a simple logic, whenever there is crisis, then there will be demand for gold. Gold has +ve covariance with inflation & -ve covariance with remaining commodities or stocks or economy.
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