Today we had a smart move in Indian market despite fall in other Asian markets and European market.Nifty was trading in range between 5555 and 5683 in today's session.
The main reason for rally in market is due to the the fall in Gold Prices and Crude oil.As we all know that India is importing crude oil and gold and it constitutes major part of imports.This is causing huge increase in current account deficit for our economy.As gold price cooled to a great extend we need to pay less amount for importing gold.Now one ounce of Gold is trading at 1361 in International market.
Also Brent crude oil is trading below $100.This also gives some relief into India's Current account deficit.
So it is always better to have current account deficit well under control.Now India's current account deficit is around 5.3% of GDP which is at all time high.
Also in upcoming monetary policy on May 3 Rbi may reduce key rates such as crr and repo rate as WPI inflation cooled to 5.96 lowest in 40 months
The main reason for rally in market is due to the the fall in Gold Prices and Crude oil.As we all know that India is importing crude oil and gold and it constitutes major part of imports.This is causing huge increase in current account deficit for our economy.As gold price cooled to a great extend we need to pay less amount for importing gold.Now one ounce of Gold is trading at 1361 in International market.
Also Brent crude oil is trading below $100.This also gives some relief into India's Current account deficit.
So it is always better to have current account deficit well under control.Now India's current account deficit is around 5.3% of GDP which is at all time high.
Also in upcoming monetary policy on May 3 Rbi may reduce key rates such as crr and repo rate as WPI inflation cooled to 5.96 lowest in 40 months
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