Gold is getting ready for a steep fall in days ahead.
But, the control point here is that the US Housing data has been extremely weak, so unless the housing market does not pick up in US the US investors in India will not pull-out of stocks.
Strong housing market translates to dollar strength.
Another aspect is the subprime data, remember the bet by a french bank which went wrong and resulted in a massive dollar weakness with world banks pumping billions into the financial markets to control the situation.
As always situations in the forex markets directly affect the stock markets.
Recently, in this month a US fund Amarnath lost 5 billion $$ in a single week because of a failed bet on gas futures.
But, the control point here is that the US Housing data has been extremely weak, so unless the housing market does not pick up in US the US investors in India will not pull-out of stocks.
Strong housing market translates to dollar strength.
Another aspect is the subprime data, remember the bet by a french bank which went wrong and resulted in a massive dollar weakness with world banks pumping billions into the financial markets to control the situation.
As always situations in the forex markets directly affect the stock markets.
Recently, in this month a US fund Amarnath lost 5 billion $$ in a single week because of a failed bet on gas futures.