Bears rule the roost!

The Indian stock markets nose dived by around 6%, amidst global fears and fears of the financial crisis which hit the European nations as well. The European stock markets were down by around 5 % on saturday and 7.5% yesterday indicating that the markets might be facing a downturn even today. The major stock exchanges through out the world were down by around 5 % Yesterday. The era of globalisation has resulted in the interdependence of stock exchanges through out the world resulting in further volatility i.e( Ex- A crash in US markets will have an impact on the Indian Markets as well).

The Indian stock market(BSE) ended up breaching the most crucial support levels of 12000 and ended up at 11800 Points. This was mainly triggered by offloading by the FII's and panic selling among the investors amidst global financial and Stock market turmoil. All these will only result in aggravating the sentiments of the market by leading people to believe that recession has crept in.Even SEBI's( Securities and Exchange board of India) favourable moves on allowing the Participatory notes could not stop the Indian Stock markets from the blushes of downtrend.

After SEBI's move on P-Notes, RBI had cut down the CRR( Cash reserve Ratio) by 50 basis points on Monday, But the European Stock Indices were down by 7% and the US Markets down by 3.5%, So lets see whether the move of RBI will offset the negative sentiments of the Indian Stock Markets.

On the other hand, Long term investors can start accumulating attractive buys.

Signing off for now- will be back after 2 days.