The first eight months of 2008 have been quite dismal for stock market investors. But with crude oil coming down to $109 levels there is a ray of hope. As explained in one of my earlier blogs, since the beginning of this year, money flowed from the equity markets to Crude and other select commodities like Gold. It seems that the cycle is now turning in favor of the equity markets. If crude goes below $100, the Nifty will climb above 5000 effortlessly. And if it goes below $80, we can expect to see fireworks! FIIs are coming back into the Indian markets and the rate of inflation is likely to peak out (or has already peaked out) soon.
The IPO market is also seeing a revival with Resurgere Mines & Minerals India Ltd doubling on the first day of listing. Another IPO is being listed today which is AUSTRAL COKE & PROJECTS LIMITED. This is a group company of Gremach Infrastructure Equipments & Projects Ltd and a positive listing of Austral Coke today will have a great positive impact on the share price of Gremach Infra also.