Stock market crash?

it is all about the foreign investment, when the financial crisis started in the U.S.A, foreign investers wanted money for their business to survive. so they took out money invested in the indian share market. when crores of money is with drawn form the share market the value of the stock goes down, hence the share market goes down.....
 
Its the Global Meltdown which has caused this downfall. ince US market crushed fifncial meltdown strated. t is all about the foreign investment, when the financial crisis started in the U.S.A, foreign investers wanted money for their business to survive. so they took out money invested in the indian share market.
 
Its becoz of the weakening of the US economy wich caused FIIs to take out their money from other countries and put it in the US market to improve its position.
 
Greedy business ethics and pessismistic approach by American Business leaders created worst credit crisis. That makes indices all around the world crashed
 
Global meltdown - and now India is an economy directly linked to the world markets, it affected us too - as the US investors who has invested their money in our stock-market, took it back. Another reason was the overall pessimistic sentiments of the (world) market.
 
complete understanding on the issue..

see firstly the stock market going upto 22k was never justified.

if u talk about development of economy then the market should have ideally reached a maximum of 16-17k.

but it reached a astonioshing figure of 22k, majorly because of FII's. FII's funded alot in INDIA and CHINA in last 2-3 years. A big reason for their investing was that new rules were passes by INDIAN GOVT. which allowed better participation of these FII's in INDIA MARKET.

now with a lot of money entering into the INDIAN economy, the companies started expansion plans and all. so infrastructural development and hiring of new staff etc started.

this had a positive impact on the market image of the companies. it is a well known fact that "90% MARKET WORKS ON SENTIMENTS". so with all this development, the market sentiments for these companies grew and their share prices also increased like anything.

this was the major reason for the market going to 22k.


NOW THE DOWNFALL:-
market came back to 9k because of the following events:-
1) US market crashed because of housing bubble, so most of the banks over there went bankrupt, and market sentiments in US were bad.
2) US is an economy which has huge impact on other economies of the world. so when US economy crashed, all other economies trading with it also felt the stress.
3) but the major reason is the withdrawl of funds by FII's, which all of a sudden took away all the money companies had got due to investment of FII's. now when the moeny went away, all the developmental work stopped.
4) the market sentiments about the companies went bad in INDIA, due to this outflow and market crashed and ended at below 8k...
 
it was 11th january 2008 when the stock market crashed,,after while investors sneaking away from stock market,mutual fund etc since they lost their huge amount of money in the market still at present market is slowly n steadily improving...lets c wats the road ahead 4 bull to come;)
 
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