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Wednesday, June 1, 2011

A Little Bit of Everything

The month of May has been bad for the equity markets in India.Those who rushed in to buy have seen a 30% fall in their assets and those who went in to short have seen the indexes rebound.

I have kept away  reading up on investing strategies,alternate assets,a bit of fiction.Finally India seems to be taking Africa seriously.I have written about the resources in earlier blogs but what surprises me is the ARPUs of telecom companies especially Nigeria and Kenya.

If Oil companies raise prices,govt earns more excise duties,inflation rises,oil prices aligned to crude prices,international oil cos sell in india,would not the Indian Oil Cos go running back to Big Daddy for more handouts as their inefficient distribution networks would ensure another LOSS?

So those investors thinking of buying Indian Oil Co stocks should do some groundwork and not let the babble on business TV channels take your breadth away!

Of all the rumours I keep hearing I feel that the lows made in June should hold up as a normal monsoon is expected and the 2nd half of the year might redeem the day for Equity traders although the news has been systematically negative internally and Globally.The record Drought in Europe is adding to the misery and we have to live with high food prices.

I have strongly believe the inverse corelation between high rate of urbanisation and higher food prices.Will write a more detailed article on this...