As anticipated, gold is on its ebb. A further fall seems on the cards. Chinese markets open on Wednesday and that opening may be the day to watch. Even if the buyers (Chinese jewelers more likely than industrial demand) come in, with the buoyant dollar, it is unlikely that precious metals will pick soon. With oil prices looking south, all in all it is good news for the Indian markets. Input costs should move down and strengthen company bottom lines.
The drop in oil prices will boost consumer spending. The only issue is it is going to pressurize oil producers whose costs of production are high. If these suppliers cannot produce to profit, they are likely to curtail production which might move oil prices even higher.
However, that is over the medium term. And in the long run , as Keynes said, we are all dead. So market players, think of the shortest horizon and be positive on the Indian economy.
The drop in oil prices will boost consumer spending. The only issue is it is going to pressurize oil producers whose costs of production are high. If these suppliers cannot produce to profit, they are likely to curtail production which might move oil prices even higher.
However, that is over the medium term. And in the long run , as Keynes said, we are all dead. So market players, think of the shortest horizon and be positive on the Indian economy.
I should pick your voluminous brains and ask you before I buy something.
ReplyDeleteThank you Jayaram.
Have a great day.