Gold Import Duty Hiked

ashu1234

Well-Known Member
#1
Sudden spike in Gold MCX futures taking it all the way to 27821 due to
import duty hike by 6% to 8%.
Bhagwan bhala kare Gold buyers ka.:D:D:D
 
#3
http://economictimes.indiatimes.com...-8-to-rein-in-demand/articleshow/20447546.cms

Don't know to which extent govt will go to curb demand and to reduce deficit.
Trend in global market is that usd is being pulled out of emerging economy and as soon as these FIIs dump shares and pull out of Indian economy our currency is doomed to record lows of 60-62 Rs.
Based on the data I found http://www.quandl.com/UN-United-Nations/NA_356_32-National-Accounts-GNI-US-Dollars-India, if USD is being pulled out it will take a long time before Indian rupee starts depreciating. India has its own advantages and competencies so I am sure they can take care of themselves if required. If US investment is helping India then I am sure US is gaining something or a lot from India as well. So its a two-way relationship.
 

ashu1234

Well-Known Member
#4
Well the data you gave was of calender year 2011 - http://data.un.org/Data.aspx?d=SNAAMA&f=grID:103;currID:USD;pcFlag:0
Its one and a half year old data.

And what I meant by dollars being pulled out is through FIIs and not FDIs. Pulling out of FDI is out of question as it will be havoc for both the parties and will only be possible in unusual circumstances which in current economic scenario is rare. But systematic pullout of dollars invested in India through carry trade will create the currency depreciation and it is inevitable, and we all know that our indian market are at the mercy of FIIs not the retail investors or DIIs.
Read out this interesting and insightful article:
http://www.bloomberg.com/news/2013-...s-to-fall-as-socgen-sees-rout-currencies.html
 

ashu1234

Well-Known Member
#5
Info about dollar being pulled out by FIIs which stated in last post.

http://economictimes.indiatimes.com...58-64-against-dollar/articleshow/20534118.cms

Selling of debt so far is creating havoc, don't know what will happen if they suddenly decide to pull out equity markets (all the valuations, PE and other fundamental are all at the mercy of US policies). Our equity and currency market is so pathetic. Rupee now at around 59 level, it seems that debt selling could alone take it to 62/$, difficult to estimate where this move will halt.
 

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