Down Down and Down...this was the trend as the sensex crashed to a record low of 14, 571.29. A dip of 516.70 points aka 3.42% was registered as the BSE sensex crashed to the lowest levels since Augues 2007.
Inflation on the other hand took a leap as the rise in petrol and diesel prices triggered a rise in prices of all commodities.
The National Stock Exchange NSE also lost 3.48%.
Although, the market rose initially, increased selling pressure owing to the rising inflation and the pessimistic attitude of the government forced a downslide.
To say that the Indian markets
will turn the corner any day and regain their previous boom levels will be a mistake.
There is no evidence to suggest that the bad times are over. Indications in
fact point that what we are seeing now in the economy will last for a few more
months at least. The movements of the Sensex and the Nifty are merely
reflections of our own economy and sheds crucial insight into the markets and
economies of not only India but the world. 
With the Sensex having reached
levels below 14,000 many have a feeling that the index has completely bottomed out.
Funds from abroad are not coming in while the high rate of inflation is forcing
the domestic investor to put his money elsewhere. There are some who also feel
that the Sensex will fall to lower levels perhaps around ten or eleven
thousand.
