Thursday, November 20, 2008

==>> Inflation fears

I just read an article in the leading news paper named " Subprimes's dad? Deflation will be worst..."
Yes thats very true. Almost all the major developed countries have falled in the recession. Now its time for the Japan to get in to the news.
Japan's exports declined at the fastest pace in almost in seven years in Oct on back of global financial crisis. Imports climbed 7.4 percent, causing a trade deficit of 63.9 billion yen ($666 million), the third shortfall this year. Crude prices have been fallen and it is almost at the jan 2007 levels. This will give some breather to the oil companies in India. But the same could be a problem for the Arab countries, as they are tryin hard to keep the prices stable. They had cut down the production to keep the price at 100$ per barrel, but the price kept on falling as there is unexpected rise in crude inventory in US.
Sobha developers have reduced prices by 8% for their major projects. WOULD THEY BE ABLE TO SELL NOW?? This questions is still there in the minds of everyone. No they will not be able to... Genuine buyers will wait for atleast price depreciation by 35-40%. and that is possible. Mkt capital of DLF is around Rs. 9000 Crs. but their debt is around Rs.14700 Crs.
Rupee has been falling like crazy on the speculation that the FII's are in rush to withdraw their money from India.

No comments: