Well after a lot of hue and cry, finally the Govt came out with the increased fuel prices today in the afternoon. With crude oil touching $135/barrel,it was imminent on the part of the govt to hike fuel prices to ease losses faced by the public oil sector companies. There has been price rise in petrol,diesel and LPG.Kerosene has been left out of this for the time being.

The split of the rise has been as follows: Petrol will now be dearer by Rs /litre, Diesel by Rs 3/litre,LPG by Rs 50 per cylinder. There also has been reduction in excise duty and custom duties. There has been a cut if excise duty in diesel and petrol prices by Rs 1/litre. Across the sector there has been a reduction of 5% in excise and custom duty prices.

The effect of this price rise will be immense. The inflation in the coming days may touch 9% in the coming days.This will be around 13 year high in inflation. The Indian markets are worst hit in the last few days. Reacting to this news sensex tanked 448 points today to settle at 15,515 levels. All technical support levels have already been breached.

Many analyst are of the view that the there may still be 10% downfall in the markets and it may even touch 14,500 levels in the coming days.But historically the month of June has given positive returns in the sensex in 14 years for the last 18 years. Lets see whats in store for the markets in this year in the month of June. In the last few days markets have already  lost around 10.FIIs have been net sellers and are expected to do so in te coming days too. There is a heavy pressure in international markets too due to very high crude oil prices.

So all these trends point to weak markets in the coming days. So the traders are suggested to remain cautious while trading for some time. But many stocks are looking really good at this levels. There is a good busying opportunity now,but only after the markets settle down and global cues turn positive. I shall bring out some intra day calls for coming days in time to come.So keep visiting this place to get the latest in the world of share markets.

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