What is the basic reason behind the indian capital market down turn?

Question

What is the basic reason behind the indian capital market down turn?

Answer 1

Going back to take long jump. Invest maximum.

Answer 2

1.FM--- frequency modulation minister whenever takes charge escalate BSE/NSE at any cost

2. FM--- food minister is a whole timer cricket minister

3.PM-- proxy minister of CPM

4.FM---foreign minister wants clear nuclear fuel for next election

Answer 3

When time runs out, markets must reverse.

In hindsight the bull run started sometime mid 2004 and ended in Jan 2008, taking stock prices well beyond any conception of fair value for them.  Between Jan 2008 and Jun 2008 the market has moved down by a large margin bringing most stocks nearer their fair value.

The common reasons doing the rounds are:

1. Sub-prime crisis,

2. High inflation,

3. High crude oil prices, amongst others.

Investors have been buying stocks during this down move as and when they see stock prices below fair value.  After all you must realize that for every seller in the market there has to be a buyer, to complete a transaction.

However, for the markets to reverse may take a bit of time.  Some expect it sooner that later and vice versa.

Akash

http://www.narachinvestment.com

Answer 4

Inflation and the Govt. apathy to it.

Answer 5

Oil price hike and global uncertainity.

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Answer 6

Sky rocketing Crude prices and Inflation are the main causes for the market down turn.  This is fuelled with global economy recession fears.

Answer 7

International Oil price, foreigner polices of government, price hike of domestics & households.