The oil prices were the last man standing as far as the commodity prices are concerned because the kind of the cool off that we have seen in all the commodities was missing in the oil prices but that seems to be cracking now.
So yes, it is very positive for the Indian economy and my sense is that the Indian markets will take cognisance of that and today the mood might be a little bit sober because of the global markets. Last night,the US markets were very positive but ended a bit negative because of recession fears and so on and so forth. After many days, yesterday we saw some decent amount of selling numbers from the foreign institutional investors. That might have played on the minds of the investors or traders but my sense is this might be short lived and we should see the mood getting positive sooner than later.In the last two to three weeks, we have seen a dramatic change when it comes to most of the commodity prices – be it ferrous metals, non-ferrous metals across the board and even precious metals. In fact even a lot of softer commodities the agri commodities have also today all of these prices are pre-Ukraine war prices so what was existing the prices which were in January-February those prices are back after almost six months.
So clearly the worst of the inflation seems to be behind us and the last man standing was the oil prices, where also we are seeing a decent amount of crack. Thereafter, in a good time frame we are seeing oil probably going decisively below $100. The worst of the inflation seems to be behind us, and that was one of the very big headwinds across the global economies and definitely for the Indian economy also. That haziness is probably out of the way.
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