Till 1st week of January sensex was riding over 20k even after the subprime mess. India was seen as a decoupled economy and it was predicted that even with the slowdown of the US, India and China will continue to perform in the Asian market. But in 2 months time frame things have turned drastically worst. 20 trillion of the investor wealth washed away from the Indian market. The sensex fall 1408 on 21Jan, 875 on 22Jan , 834 on 11Feb 901 on 3March and 771 yesterday 13March.
There are various reasons why the market is worried and some of them which I could gather are :-
- The industrial production growth is lower
- Inflation is higher then expected
- News from the US is not good
- Sentiments is down on the bourses. Are we considering ourselves in to slowdown ?
- The crucial meeting between UPA and Left on the nuclear deal is just 3days away that will decide the future of the present government.
There are punters and traders still considering it as a correction and the economist has there own view. So if u planning to make entry in the market just, be aware of the situation how volatile it is?