Largest fall In BSE’s 150 Years

It is the worst single day fall in the history of Indian markets. SENSEX and NIFTY lost 6.7% in a single day. I put all the efforts to understand what went on that black Wednesday in March that pulled sensex down by 300 points. I had no serious reasons as to why the markets reacted on that Wednesday. I thought these things do happen in markets and nothing could be attributed for the fall.

Some of the global investors have been saying that the Indian markets are overvalued at these levels and a deep correction is due. I strongly believed the same thing but never imagined a correction such as this. 860 points in a single day is record in the 150 year history of BSE SENSEX. So, as it happens every time, some of the experts on all the business fora came up with some good reasons for the fall. I have no idea what they are talking about. We had UPA formed at a time when all the investor community expected NDA to return to power. SENSEX crashed by 560 points, SENSEX fell by 460 points when SEBI barred some of the major players from trading. All along, we have been hearing that economy is booming and there is no need to panic about anything that happens in markets. Who didn't tell me that the fundamentals are intact? So, what changed overnight? Someone said that global markets are weak and Indian markets just followed. Give me a break! We are the guys who said that the Indian markets are no more follow Western markets. I think all the experts want to say something sweet.

RBI announced the credit policy in April and made conscious effort not to make any changes to the existing interest rates. People are saying that the raise in interest rates in US caused this 860 points fall. But, what happens to the domestic investor? FII doesn't pay tax for his returns and gets off the market when he wishes to, putting the poor domestic investor at loss. To save the market, PC announced that the FIIs will not be pulled into the tax net. No, Sir! It didn't work. Can you find something else to save the domestic investors who turned to markets at high levels?

My portfolio is perfect synonym for bloodbath. Everything in my portfolio is heading south. It is not a fair game but I have no regrets about playing on this uneven field. You lose sometimes and win at times. With the limited expertise, I am trying to ride with the big fish. Let us hope for a better ride than what it has been.