Indian Share market has turned highly unpredictable. It doesnt stand for any situation and the current day affairs. Stock experts say that this is mainly due to american economy crisis. But how far this is true is really a big question which is unanswered.
My hunch is that there is a great role played by politicians and their concerned members who make a lot of money worthy a thousand crore only through futures and options and day trading. The money is thus trapped by a single person or a family.
And hence things turn worse.Anuradha karthikeyan ISCian Love is God
The only reason of falling of share market is due to the following:
1. Unnessary hype and 2. too much dependent on US market.
1. Unnessary Hype: answer this honestly: Do you think India economy market has developed itself so much that market points has raised from 8000 + around 2006 end year and within one year it has raised to 20,000. Its the raise done by big guns in the market to attract invertors to put their money into it. Then reduce the market and get all the money out of it.
2. dependent on US economy: Even if US gets low tide, Indian market goes more than that.. we should not depend on them ..rather we should be strong enough to stand on or own economic condtions that is 8000+ points of share market and not on the us economy that was 21000+.Varun Sharma
FII'S have been selling huge shares and hence the dollar reserves are been reducing in India.huge supply of shares with relatively no demand for these shares has reduced the share value. Short selling and buing of shares by FII's has to be baned then the dollar crunch will come down. Globally also the markets have fallen and India respods to that immeditely and starts panic selling.This altogether has resulted in market fall
I Think its the panic reaction on global front whicvh led to fall the market this way, there is global slow down, no doubt but the market specially Indian market over reacted. At current growth I dont think it will go beyond 8500-9000 Sensex any more. Now there will be recovery and we will see market crossinfg 13000-15000, may be we see a fall again during elecions.
There are many reasons for downfall of Indian Share market. Important reasons may be is instable political scenario in India and economical crisis in US. As many foreigners begins to sell their Indian share market share so that they can invest more in their country, sensex is coming down. This may also be one of the reason.
Too much negative sentiment. Why many of the shares are trading below their book value when none of them have reported any losses?
mentally also everyone are stuck to America's nipples. They are not able to think beyond America. They do not have confidence in their own business leaders. Even when the American system of regulations has failed and ours has worked, they still do not trust our system and believe the American system blindly.