WORLD ECONOMY:WHERE IT WILL LEAD THE INDIAN MARKETS?
A lot of turbulence is witnessed currently in markets across Asia.
What does the future hold?
1.Europe:13 banks which were in the negative post a stress test have been bailed out by the EU.In the near future no immediate possibility exists as a systemic risk.
2.USA:The USA is recovering and interest rate hikes are expected in 2nd half on account of a stronger Economy.The oil supplies held strategically for decades hold it in good stead.
3.Oil Producing nations:All oil producing nations would need to diversify their revenue streams over the next couple of years to ensure stability in the region.
IS A WAR FOR OIL ASSETS IN THE OFFING?It does not seem so as crude prices are in the sixties unlike the IRAQ situation when it was near 100 dollars.
It may not be profitable for any nation to acquire oil assets when market prices are near USD 60 to a barrel.
Our thinking is Large cap,Banking& Financial Services are likely to do well given the scenario and effective policy interventions by the government at a Central level.
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