India and China continue to fuel gold demand: WGC

Gold’s strong start to the year was reinforced during the second quarter of 2011 where total global gold demand measured 919.8 tonnes (t), worth a near-record US$44.5bn, with broad-based support across all sectors and geographies. Standout markets were India and China, as these two markets accounted for 52% of total bar and coin investment and 55% of global jewellery demand, the World Gold Council announced today.

And, the turmoil continuesin world markets.....

After few days of relief, world equity markets slumped anew amid no sign of a rebound in the US economy and lingering worries over the eurozone debt problems. The market turmoil was sparked by renewed fears of major financial upheavals in Europe, and growing concerns that the US might slipping into another recession. Morgan Stanley slashed its global growth outlook for 2011 and 2012, adding that the US and Europe are hovering dangerously close to a recession. The Wall Street bank estimates expansion of 3.9%, down from a previous forecast of 4.2%. Citigroup cut its 2011 GDP growth forecast for the US economy while Deutsche Bank lowered its outlook on China.

Weekly Newsletter -Aug 21 2011

Another volatile week saw the main indices lose 4.5% apiece, as a global bloodbath dampened the sentiment even as worries prevailed about the moderation in the domestic economy. Morgan Stanley pruned its global growth forecast and warned that the US and Eurozone are close to being in recession. It also cut GDP projection for India as well as China. Talking of economy, India’s Q1 FY12 GDP report will be out on August 31. But before that we will have to contend with the F&O expiry next week.

It will be tough to call the market’s direction from here on given the heightened volatility and worsening global economic conditions. Only a sustained and solid recovery in the overseas markets can lift the pall of gloom. For that to happen, the markets need consistent dose of good news in terms of economic data and decisive policy action. For the time being the outlook appears murky and therefore calls for a measured approach. However, one may look at quality, long-term stories as valuations have come off quite a bit.

Anna Hazare at Ramlila Maidan for a 15-day stir

Anna Hazare walked out of the famous Tihar Jail on Friday morning and landed at the Ramlila Maidan to begin a 15-day fast protest for a stronger Lokpal Bill. The anti-corruption crusader is already on a hunger strike ever since he was sent to the Tihar Jail on Tuesday. Hazare is believed to have lost as much as three kilos in the last three days of his hunger strike. His blood pressure, however, remained under control at 88/160. En route to Ramlila Maidan, he stopped to pray at Mahatma Gandhi's memorial at Rajghat. He bowed his head and spent a few minutes there before making his way to India Gate.

Markets sink 4 % in painful week on global massacre

Tumbling trend continued on the Dalal Street for fourth week due to panic selling among the investors on concerns of global recession and sovereign debt crisis in Europe

Major news for the week

July inflation at 9.22% versus 9.44%

IT shares take heavy beating on US recession fears

RBI expects GDP growth at 8% to tame inflation

Educomp Solutions tumbles on I-T raid

DLF plunges as CCI imposes penalty