The all important inflationů - Views on News from Equitymaster

Helping You Build Wealth With Honest Research
Since 1996. Try Now

  • MyStocks


Login Failure
(Please do not use this option on a public machine)
  Sign Up | Forgot Password?  

The all important inflationů

Jun 27, 2008

...seemed to have rendered stocks on the benchmark Indian indices almost 'untouchable' since the start of the session today. This was in anticipation of the weekly inflation (as measured by the Wholesale Price Index - WPI) numbers. The BSE-Sensex reluctantly opened the session nearly 500 points lower than yesterday's close and barely recovered there from. Even once the inflation numbers were released, and were well within expectations, participants chose to stay on the sidelines. News relating to further hardening of crude oil prices has spooked markets globally over the past few days. In India, the fuel prices were hiked by about 10% on June 4 2008 and inflation dutifully galloped to a 13-year record of 11% for the week ended June 7, 2008 (up from 8.75% for the week ended May 31). This week it has marched further to 11.42%.

Trouble with the inflation numbers for Indian stock market around the world just doesn't seem to go away. Even Japan, which has been struggling with deflation for many years, finds itself staring at consumer inflation and declining household spending. With oil prices hitting the US$ 140 per barrel mark and Goldman Sachs forecasting more credit related write-downs at Citigroup and Merrill Lynch, the US markets also crashed yesterday. Further, geopolitical issues continue to play a dominant role and the latest such instance causing the oil prices to escalate has been Libya's comments that it is studying the possibility of reducing output following potential US actions against the OPEC countries. The largest oil exploration company in India, ONGC, sees prices remaining firm in the near to medium term, as it sees a demand inelasticity to prices.

Equitymaster requests your view! Post a comment on "The all important inflationů". Click here!


More Views on News

Your Queries on the 8-Year Cycle Answered (Fast Profits Daily)

Sep 25, 2020

You've sent in your queries on my videos on the 8-year greed and fear cycle in the market. I'll answer them in this video.

It's When You Sell that Counts (Profit Hunter)

Sep 25, 2020

How I alerted readers to the impending crash last week.

Can the Nifty Fall to 10,200? (Fast Profits Daily)

Sep 24, 2020

The Nifty has reached an important support level today. If it breaks then we could see further downside.

How to Save Money by Exiting Stocks Before They Fall podcast (Views On News)

Sep 24, 2020

A penny saved is a penny earned. It doesn't matter where you enter. All that matter is where you exit. Watch this video to identify an opportune time to exit your investments and book profits.

ICICI Prudential ESG Fund: Aims for Sustainability (Outside View)

Sep 24, 2020

PersonalFN briefly explains the newly launched fund : ICICI Prudential ESG Fund.

More Views on News

Most Popular

Why We Picked This Small-cap Stock for Our Hidden Treasure Subscribers (Profit Hunter)

Sep 17, 2020

This leading household brand will profit big time in a post covid world.

My Top Stock to Buy in this Market Selloff (Profit Hunter)

Sep 22, 2020

The recent correction offers a great opportunity to buy this high conviction smallcap stock.

What Do the Charts Say About Buying Smallcaps Now? (Fast Profits Daily)

Sep 18, 2020

Everyone seems to be excited about buying smallcaps now...but is it the right thing to do? What do the charts tell us? Find out in this video...

How Much Money Do You Need to Be a Professional Trader? (Fast Profits Daily)

Sep 17, 2020

In this video I'll answer a question I get asked often: How much capital do I really need to trade the markets for a living? Let's find out...


Covid-19 Proof
Multibagger Stocks

Covid19 Proof Multibaggers
Get this special report, authored by Equitymaster's top analysts now!
We will never sell or rent your email id.
Please read our Terms


Sep 25, 2020 (Close)