Mumbai: The best return between the last diwali and this year is generated by commodities which are generally described as ‘least loved’ because of their relationship with climate change.
Australia’s coal prices in the past 12 months have increased by 188% – by the most than the appreciation of Brent crude, which is under focus on a 95% increase.
While coal and crude oil are the best players in the last 12 months, the worst players, ironically, are gold and silver, which fell 4.7% and 2.9% after rising in the middle-to-safety after the economic crisis induced last year , according to the analysis with the treatment ratings.
Coal has seen a demand on even when the world tries to arrive at consensus on zero emissions.
One reason for the price increase is India, who has seen new requests for power because the economy comes out of restrictions brought due to a pandemic.
In addition to coal and crude oil, there is no commodity or other assets approaching doubling the price in the past 12 months.
While Sensex has doubled from the post-covid base, it has gone up to only 38% since the last diwali.
Other commodities that have been done well are copper (45%) and soybean oil (27%).
Price increases have demand elements, but this is not a great long-term news for investors.
Care ratings have said that there are bright lights that shine around (in terms of macroeconomic count) and it seems that the economy witnessed the rotation.
However, the report warned that what was good for years may not apply for the next 12 months.
While the agency has maintained a growth estimate of 9.1%, this expansion is because the smaller and economic base is still not in revival.
“We also have to remember the fact that all these good numbers are in the realm of consumption and not investment.
Infrared expenditure is still limited to the government and the pace of private investment is limited.
This will be the main COG in the process of growth, and we expect the resurrection only at FY23.
The rest of this year, the best, stable, “said the report.