After opening the day on a flat note, the Indian indices witnessed choppy trades and are presently trading marginally lower. Sectoral indices are trading on a mixed note with stocks from the realty and telecom sector witnessing maximum selling pressure. Auto stocks are, however, trading in the green.
The BSE Sensex is trading down 30 points (down 0.1%) and the NSE Nifty is trading down 10 points (down 0.1%). Both the BSE Mid Cap index and the BSE Small Cap index - are trading flat. The rupee is trading at 66.94 to the US$.
Gold prices have been trading on a mixed note this week on the back of strong prospects regarding the US interest rate hike by the US Fed.
However, despite this fall, gold had witnessed buying interest during the month. The rise in gold prices is seen as market participants are increasing their exposure in the commodity as a safe haven bet against the ongoing global volatility.
Also, many of the world's most intelligent and successful investors have recommended owning gold. The list includes David Einhorn, Seth Klarman, George Soros, Marc Faber, and Stanley Druckenmiller.
A recent entry in the above list is the big bull of Dalal Street, Rakesh Jhunjhunwala. In an interview with the Economic Times, Rakesh Jhunjhunwala stated that he still is bullish on gold as compared to other asset classes.
To keep a tab on the movements in gold and other commodities, you can read weekly market commentary from the Daily Profit Hunter team. Their weekly commentary tracks the developments in the global economy as well as stock, currency and commodity markets.
In another news update, an article from Firstpost states that India won't benefit from demographic dividend. The article stated that a very large labour force is moving into an environment which does not have the ability to absorb them. This, it opined, on the back of a report by IndiaSpend which pointed out that though India had seen high growth after 1991, less than half the population was fully employed.
As far as our views on demographic dividend are concerned, we believe that India's demographic dividend could turn into a demographic disaster. This is because we aren't creating nearly enough jobs to absorb the increase in the workforce. In fact, this disparity is so wide that it could have far reaching consequences.
Vivek Kaul, editor of the Vivek Kaul's Diary, had written many articles on the sorry state of India's demographic dividend. He has also just launched the Vivek Kaul Letter which outlines the Indian economy and its challenges apart from the demographic dividend.
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