2008 would go as one of the most happening year in the equity market and still we are just in the month of May. It started all from January where we had one of the sharpest correction which is still on. Then suddenly in the world market oil started boiling along with commodities and all the countries had there inflation going up and the growth slowing. I also started getting more tele calls from many brokers to open the commodities trading account and they told the target in Gold, Oil is very high.
The investors found that its good to have the money in commodities rather than equity and investors moved out of equity giving the equity market one more move southward and also commodities going up all the time the foreign investors started moving their money from market like India to rich and exporters of commodities countries like Brazil which is at all time high in such a market.
Now as oil is not looking to cool off there is pressure from the oil producing companies that they cannot go bankrupt for fuel at the current available prices and it will soon become situation where there will be no oil in the pumps and so now Government is thinking over some solutions and as poll is round the corner they would prefer not to put more pressure on consumer but as the situation are, there is hardly any way out but to increase the fuel price and that would result in more inflation and such news made the equity market slip on Friday and expect some more weakness in the next week and on Monday.