India to Benefit from crude correction

After the political crises in Middle east the Brent crude traded above $125 which was a concern for further economic growth. After the recent financial crises where the worlds most powerful country USA was revised on its rating from AAA to AA+. The crude oil prices were eased and there is scope of crude oil prices falling in near future. Industries will benefit from this take, the operating cost of industries will fall and so the major chunk will be flashed in net profits. Also the inflation will come down and so there is scope of RBI revising n reducing interest rates. This prove a sigh of relief for UPA as the govt would claim on controlling inflation. The major variable at this juncture is fall in crude oil prices.  Also the Kharif output is reasonable enough due to sufficient monsoon which would also contribute to fall in inflation. But will these really pull down CPI inflation I think only khariff output will contribute but there is some scope of CPI reducing due to correction in crude oil prices.

KHP

ecomaniac