Today market was down, BSE went down by 354 points to 27512 and NSE went down by 113 points to 8349.The markets are good in a way because they were over valued. The correction was much necessary, the devaluation of the Chinese currency Yuan has made the China cheaper as it can dump its goods in the International market. That is why, Tyre manufacturers are in trouble as one in four tyres that come into China are from India.
It will be a problem for the Indian currency as it has become very weak and imports which are required as raw materials for Industry will suffer. Luckily crude has come down so for India were we import a substantial quantity of crude will be cheaper making us spend less on crude. Software exports will be good as Rupee has gone down steel stocks did well, as the Government has increased import duty on steel. The Consumer Price Index slumped by 3.78%
The Industrial output rose to a four month high of 3.8% compared to 2.7% in the previous month.The passing of the GST in the Rajya Sabha appears to be doubtful due to pandemonium in parliament. Non passing of GST is a negative to market. The increase in Industrial production and fall in consumer price index is good news for the market. Trade and invest carefully HAPPY TRADING AND INVESTING.
