Saturday, February 05, 2011
Another tumultuous week is behind us but the pain may linger for a while before we get a major relief. In fact, the week could have ended much better if it wasn't for Friday's ferocious fall. Before Friday, the market was evenly poised and it looked like we were in for a small rebound after the recent mayhem. But a massive selloff on Friday dented all the hopes.
The ongoing political turmoil in Egypt worsened with no end to the nationwide public protests against the three-decade-old autocratic regime of President Hosni Mubarak. Crude oil remained elevated and was headed for its second weekly gain amid concerns that the civil unrest in Egypt could spread to other parts of the Middle East and could adversely affect shipments through the region. Oil futures increased 4.3% on Jan. 28, the most since Sept. 2009, following clashes between police and protesters. Global stocks plunged that day as rising tension in Egypt overshadowed US data showing GDP accelerating in the fourth quarter from the previous quarter.
Former telecom minister A Raja and his two former aides - former telecom secretary Siddharth Behura and personal secretary RK Chandolia were remanded to a five-day custody by a Central Bureau of Investigation (CBI) special court in New Delhi in connection with the 2G spectrum scam. "The prayer of police custody is justified and all three accused are accordingly remanded to police custody till Feb 8," special CBI judge O.P. Saini said in a statement. Raja was on Feb. 3 presented in the Patiala House court along with his two aides.