Indian bear market is a reality – the trouble has just started and Indian market is totally dependent on American economy and Wall Street
Suresh Rao
Feb. 16, 2008

There are signs that Indian stock market is getting ready for a shocking crash of a lifetime. While the domestic fundamentals are not that bad, the country’s ignorant befuddle leadership has tagged Indian economy to that of America’s by allowing free from foreign direct investment into the stock market.

The losses in recent days are staggering in the Dallal Street. The loss in sensex does not tell the true story. The broad stock market has suffered much more than evident from well advertised indices.

In the last Indian bear market of year 2000, the sensex fell 54 percent in 20 month bear market. In the last three weeks sensex has fallen 28 per cent from the high of 21,207 on January 8 and the low of 15,332 seen on January 22. But that is not all. The underlying bear market is much worse than year 2000. 80 per cent of the 2,764 stocks traded had lost more than 40 per cent of their value in this brief period. This was much more than the 70 percent of stocks that lost as much value over 19 months in 2000-2001.

It is very clear now that Indian stock market has a bubble-burst. Normally a stock market loses ,ore than 85% of its value from the peak after such bubble bursts. If that is true Indian sensex is headed for 3,000 or lower.

Indian bear market is a reality – the trouble has just started and Indian market is totally dependent on American economy and Wall Street
Suresh Rao
In the last Indian bear market of year 2000, the sensex fell 54 percent in 20 month bear market. In the last three weeks sensex has fallen 28 per cent from the high of 21,207 on January 8 and the low of 15,332 seen on January 22. But that is not all.
READ MORE>>

Sensex falls more than 5% on liquidity scarcity. Global stock market problems and selling by Foreign Institutional Investors
Sandeep Roy
The main problem with Indian the stock market is lack of global liquidity. The real value of Sensex is close to 5,000. Yen dominated carry trade and liquidity from the Western financial institutions created the massive bubble in Indian stock market.
READ MORE>>

Reserve Bank of India tells ICICI Bank, HDFC Bank, Yes Bank, Citi, Deutsche, Standard Chartered, HSBC and ABN Amro to stop selling exotic forex products
Nina Shankaran
Certain banks and financial institutions sold a lot of exotic foreign exchange products that eventually caused a massive loss for Indian companies in the export sector.
READ MORE>>

Sensex drops again on Indian growth moderation concern and worldwide lack of liquidity
Babu Ghanta
Indian GDP growth can moderate below 6%. According to some analysts, if Government of India opts to market price of crude oil and corresponding diesel and gasoline prices...
READ MORE>>

Start of a new era of India-US defense cooperation – India purchases Super Hercules military transport planes from Lockheed Martin
Shankar Hotabi
Start of a new era of India-US defense cooperation – India purchases Super Hercules military transport planes from Lockheed Martin
READ MORE>>

India faces trouble as the Government is forced to hike prices for petroleum products and increase duty to pay for past oil subsidies
Kartik Punaskar
One of the main reason why crude oil has approached $100 a barrel, is the blanket subsidy in oil prices through Government owned oil companies in India and China. India is finally facing the reality.
READ MORE>>

MORE ARTICLES >>