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Wednesday 31 July 2013

Why Indian market is in free fall





  • Indian Markets have gone in Cruse mode for free fall. There is no stopping now....Many people have asked me why this free fall now,It attributes multiple of reason,
  • Rupee depreciation has caused our deficit to rise and causing pain. Growth is near zero for the worlds fastest growing economy. Yes With no growth, you dont have many to pay the dues.
  • People where initially blaming gold for this, but now that gold import is almost zero, still the rupee depreciation continues. To recover rupee what can government and RBI do, Stop the Futures and Options trading on Currencies, this will stop the speculative trading and will show the actual demand and supply
  • The next reason is that the new govt that will come next year, is causing fear in investors mind, with no clear majority and the regional parties having the trump card will make hard for new govt in centre to have a say on key policies. So there is no hope until there is clear and stable govt in centre.
  • The next is the FII who are pulling out thier money from Indian bonds. They dont have trust in our bonds, so they are sellling in open maket and exiting the market and investing back in US market.We are left at the hands of these foriegn investors,pity to say that we can survive without any imports other an Oil, still our makert is run by this liberal fund managers who take small investors for a ride, 

We dont see any stop in this free fall for now. When Nifty reaches 5200 start cumulating.

Remember dead cat will always bounce back, it's just a trap. 

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