The current data releases of the government may look like a rosy picture of the economy but one should not forget that most of the economic gains are the result of fall in crude prices. However, for last two months crude prices have been consistently rising and furthermore the value of rupee is constantly falling against dollar. According to the government release the price of Indian crude basket is around US$ 64.00 per barrel (bbl) on 12th May 2015.
Considering the geopolitical as well as seasonal cycle the price of crude is not likely to cool off. However, the worrying factor is the failure of Narendra Modi;s government in controlling the fall in the value of rupees. It technical trends are to be believed this time rupee is highly likely to touch the zone of 70 and 70 plus against dollar. There are certain other factors which may cause price rise and one of the most prominent one is