By C. Kutumba Rao
Spooked by lacklustre interim budget and deepening global recession,
markets witnessed the biggest weekly fall since October. On the BSE,
the Sensex closed below the 9,000-level shedding 792 points at 8,843
and the Nifty on the NSE tumbled by 212 points to end at 2,736.
Disappointment over the lack of stimulus package for the economy in
the budget and weak global cues have triggered yet another wave of
sell off from FIIs.
Domestic institutions were also in sell mode. The only positive
trigger left before the announcement of the general elections is the
possibility of interest rate cut by the RBI due to a sharp fall in
inflation. True to predictions, gold prices crossed $1000 per ounce
mark as investors flocked to the yellow metal to preserve capital amid
fears of financial and economic instability.
Given the plunging stock markets, gold prices could touch $1150 an
ounce due to investment and speculative buying.
It is per…