India just bought a whole lot of gold from the IMF auction, 200 tonnes to be precise. Though a step taken in the right direction, it seems to be a bit delayed as most BRIC and developing countries especially China seem to have already diversified their reserves away from the dollar.One also wonders if the price is right as the yellow metal is selling at $1086… Wonder if the perma bulls of gold have it right when they expect gold to double from here.
Secondly im rather uncomfortable with the FMs talk contrasting India’s strength with weakness elsewhere: “Europe collapsed and North America collapsed.” . He forgets, we have plenty of problems of our own. No wonder a Livemint headline says Markets-bearish-but-FM-bullish
Agree with Chris Woods view on markets.
I was just wondering when the interest rate cycle would turn and interest rates would go up.Consensus says Rbi might increase rates by March. But one always wonders how things would turn out especially when traders world over are jittery, inflation at the retail end is in double digits and still going up, and the govt is in no mood to usher in some fiscal prudence. All that the ministers seem to do is talk austerity, mostly from the confines or their mini palaces in Leutons Delhi.
Recently Salman khurshid talked about Class action suits. But as this article suggests there might be very little progress on it as it can open a can of worms both for the govt and for the corporates that fund parties running it.
Ihe IPO markets as expected have have remained dull and most IPOs have given negative returns.