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After opening the day on a flat note, the Indian stock markets registered some gains and went on to trade marginally higher. Sectoral indices are trading on a mixed note with stocks from the energy and FMCG sectors leading the gains.
The BSE Sensex is trading up 88 points (up 0.3%) and the NSE Nifty is trading up 16 points (up 0.2%). The BSE Mid Cap index is trading up by 0.1%, while the BSE Small Cap index is trading up 0.4%. The rupee is trading at 66.84 to the US$.
Gold is witnessing buying interest today. At the time of writing, the yellow-metal was trading higher by Rs 86/10 gms or 0.27%. This is seen on the back of a weak dollar and a positive trend in precious metals overseas.
Gold prices have been trading on a positive note this week on the back of dimmed prospects regarding the US interest rate hike by the US Fed. One must note that the US productivity data released this week came in worse than expected. This in turn has reduced the prospects of a US rate hike this year and weighed on dollar and global stocks.
The rise in gold prices is also seen as market participants are increasing their exposure in the commodity as a safe haven bet against the ongoing global volatility. Also, many of the world's most intelligent and successful investors have recommended owning gold. The list includes David Einhorn, Seth Klarman, George Soros, and Stanley Druckenmiller.
A recent entry in the above list is noted investor Marc Faber. In an interview with the Economic Times, Marc Faber stated that he still is bullish on gold as compared to other asset classes. Apart from this, he shared his views on Indian markets and stated why he would rather invest in India than in the US. Our recent edition of The 5 Minute WrapUp explains some of the reasons why Marc Faber thinks so.
To keep a tab on the movements in gold and other commodities, you can read weekly market commentary from the Daily Profit Hunter team. Their weekly commentary tracks the developments in the global economy as well as stock, currency and commodity markets.
In another news update, there are several names doing the rounds for the next governor of Reserve Bank of India (RBI). According to the people in the known, the front runners in the list are former deputy governor, Subir Gokarn, one of the serving deputy governors, Urjit Patel and BRICS Bank chairman, K V Kamath and NITI Aayog Vice Chairman, Arvind Panagariya.
Prime Minister Narendra Modi will be taking a final call on this matter in the next few days.
The search comes on the back of surprise exit announcement by Raghuram Rajan last month. Rajan is to leave office on 4th September.
Talking on his termination of RBI governorship in the latest monetary policy, Raghuram Rajan said, 'This is my last policy statement, but there are still 28 days in my term which I intend to use fully.'
When asked about how he looks at the few controversies that marred his term he said 'I do not want to say anything about the critics. There have been support from a lot of people. At the end of the day, I look back at my tenure positively as we feel we were able to move the needle a little bit every day. I am leaving the office feeling I did something.'
We believed, the RBI was in good hands under Raghuram Rajan's leadership. So, his exit from RBI next month will be a big loss for us. To know more about our views on him, please read the The Honest Truth article: Why two-eyed Rajan is a King!
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