USDINR is a better trade
In past few months, the rally in stocks markets, bonds, precious metals and resilience of energy prices despite diminishing demand due to lockdown have been subject matter of intense debate and extensive analysis. It has been strongly argued that prices of financial assets may not be in sync with the economic realities. Given that the corporate earnings are likely to remain suppressed for an extended period of time; and the government's fiscal discipline has been violated, ideally the stocks and bond prices should have fallen. The data also indicates that the Indian consumers' demand for gold has fallen sharply in past few years. India, one of the largest importers of gold has been importing less gold since 2017. The world gold council expects the Indian gold demand to hit 26yr low in 2020 (see here). Theoretically, this should have checked the prices of bullion too. The demand of petroleum products has also contracted in past 5 months. Nonetheless, prices have risen for stocks...