What is the reason for the recent fall of sensex?

Question

What is the reason for the recent fall of sensex?

Answer 1

Rising crude oil prices and weakening of global economy have made the sensex to crash. The fall may continue until crude oil prices come down to at least $100 per barrel.

Answer 2

Political instability.

Inflation.

High crude prices.

International recession.

Artificial increase in share prices.

Performance of some of the sectors of economy.

The list goes on.

Answer 3

financial instability.

govt unable to tackle up with the inflation.

govt's measures to tackle up inflation at the cost of national growth

dere r many direct n indirect causes for it.all r kinda related to each other.

Answer 4

INVEST in Top 8 Scrips in 2008 when the Indian Stock Markets fall in July 2008 (BSE Sensex support will be 12,868.28 (+/- 0.1% variable) and NSE S&P CNX Nifty support will be 3,821.00 (+/- 0.1% variable)):

Reliance Industries (RELIANCE), Infosys Technologies (INFOSYSTCH), ICICI Bank (ICICIBANK), Larsen & Toubro (LT), Housing Development Finance Corporation (HDFC), Bharti Airtel (BHARTIARTL), Tata Steel (TATASTEEL) and Oil & Natural Gas Corporation (ONGC).

INVEST 16% in First Scrip, 15% in Second Scrip, 14% in Third Scrip and so on of your total fund or

INVEST 12% in each scrip of your total fund.

Please be in touch with me by email on [e-mail]

I am a Technical Analyst.

Answer 5

The recent fall of the sensex has been going on since January 2008.  So, it isn't really recent.

We have been in a bull phase since 2003.  However, in more recent times in conjunction with events both domestic and global; it was estimated that equity as an investment class or instrument was over-priced.  This has resulted in investors both large and small to withdraw from equities and move to commodities amongst other markets.

However, more recently that is July 2008; it is expected that equities in India have reached fair value and in some cases even below fair value.  Thereby, the investors both large and small would return to the equity markets and we would see the sensex move up to higher levels.  However, we cannot expect that the stock market or the sensex would recover to its January 2008 highs in the current expected upmove.

Happy investing,

Akash

http://www.narachinvestment.com

Answer 6

Read on >>

http://myfinancetimes.com/2008/07/04/inf...

The above article will elucidate you on all reasons for the current downtrend in the market.

Answer 7

Global recession, over valuation of the share prices,

impending conflits between Nations, degeneration of ethics,

Political interferences, changing  financial policies are some of the root causes of the fall.

Answer 8

Inflation is the major cause.

Real estate rates are also falling...

Market is on downwords since the launch of Reliance Power IPO.

Reliance Creted hype and all the big players in sharemarket started selling the sheres to newbie traders and from that time... the market is falling.... like rain.

Sensex is around 13000 points now.