In the last few months there have been no stopages of bad news in the market. Americas financial sector crisis leading to many financial companies going bankrupt, take over of some banks. These crisis were not only seen in Amercia, but other countries also. But now the scenarios is changed a lot. Now the problem is not with the financial companies, but the COUNTRY itself....... Ireland running out of the cash reserves, it has debt 10 times more then its GDP. Problems are luring around Pakistan too. Now its time for the Argentina. The government planned to seize $29bn of private pension fund to service its debt obligations, fearing that the country is heading towards its 2nd default in 10 yrs.
Crude prices have fallen down to $66 per barrel, but the goverment is not planning to reduce to cut down the fuel prices in India. This is a provision to save the bleeding oil companies, who are finding it difficult to survive below the increasing subsidy burden. Yesterday we saw a major round of selling pressure in the banking and the real estate sector. Many companies are at their 52 week low. Real Estate sector is still facing heat due to very less buying intrest in the market. Builders are finding it very difficult to attract buyers even after providing them with free beeies, interiors, waiver of stamp duty and registration. They are facing liquidity problems as the banks also fear from lending money to them. Many companies are seeking foreign funds.
Gold prices have fallen down due to high price and lack of buyers. Gold prices will see a further fall in the prices. When saw a rally in the gold prices with the crude rally. Crude touced a high of around $145 per barrel and gold nearly Rs. 12000. But the crude prices have halfed to nearly $66, but gold prices are still at the top. Crude prices saw a fall in the fearing fall in demand from the developing countries. Gold should also see some further fall in the demand and the prices...
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