Bear market in India is structural and may continue for decades – Sensex falls again because of hyperinflation and stagnation in outsourcing
Nina Shankaran
Jan. 31, 2008

Sensex faces the worst kind of bear market. The money that shot the index up – the Foreign Direct Investments and carry trade is getting reversed. The foreign financial institutions are leaving India in large numbers. The 30-share BSE barometer was quoted at 17,417.63 points, down 423.01 points from previous close of 17,758.64.

Indian stock market faces two major problems. The first is stagflation. The commodity hyperinflation and wage hyperinflation has created the worst environment for corporate profit. The second is the weakening depressed US economy. The outsourcing to US will come to an end in the next several tears as US finally closes door to illegal immigration, currency manipulated outsourcing and dumping of goods and services on American economy.

In addition, the Indian stock market is regarded as overbought by any standard. Even a healthy 30% correction takes the Sensex below 14,000. But in reality Sensex can fall well below 5,000 in the next five years creating serious depression in Indian economy.

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Bear market in India is structural and may continue for decades – Sensex falls again because of hyperinflation and stagnation in outsourcing
Nina Shankaran
Sensex faces the worst kind of bear market. The money that shot the index up – the Foreign Direct Investments and carry trade is getting reversed. The foreign financial institutions are leaving India in large numbers.
READ MORE>>

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Sensex down 372 on liquidity concerns - the bear market in here with sporadic upside rally
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