Crude Oil and Indian Markets next week
Crude oil is boiling!!! On Friday oil price touched a high of $139 and closed at $138.75 a barrel. Dow Jones tumbled by 400 points on Friday on account of higher oil prices, USD depreciation against Yen, joblessness in US for the month of May increased to 5.5% ,higher than expected, most in two decades and UK government’s proposal of interest rates hike. Morgan Stanley predicts oil prices to touch $150 per barrel before US Independence Day, July 4th. An Israeli minister said an attack on
What is its effect on near future of Indian markets?
Considering above factors, experts expect Indian markets to start with a deep discount on Monday. Some of them are expecting a lower circuit on sensex. Global cues are very week at this point in time. Inflation may touch a double digit number in near future. Growth rate of most of the companies may not be in line with their history. Medium term story is also not good on expectations of political instability in
1000 to 1500 points of correction is expected in coming week. In this down trend, some fundamentally good companies now at reasonable price will also get a bad hit. So stock specific approach seems to be a good idea for short term.
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