Sensex falls to 13500!

Two week back the market was at 15000 and now it is trading at 13500. What is it that has changed in this two week?

Yes, the budget is out and I feel that it is a decent budget. Though there was no drastic cuts in tax or huge incentive to exports but it does provide for domestic growth like Infrastructure spend, naukari yojna, etc to boost the domestic consumption.

So it brings back the same question that i had asked in my previous post. Was this all for a short term gain? Will the market fall further?

India Shrs End Near 2-Month Low - http://online.wsj.com/article/BT-CO-20090710-705015.html#articleTabs_comments

Is the worst over for the Indian stock market?

The stock market touched 8000 in March and is now hovering around 15000. Does this mean that the worst is over! Is it going to go back to the peaks of 2007-2008?

Working in the financial industry, I see that there is not much of good new around. The world economy is still trying hard to contain the deflationary situation, the housing market is no way near the recovery and most importantly we are still hearing about redundancies, pay cuts and no bonuses!

If there is doom and gloom situation everywhere in the world, why is the Indian stock market on the rise! Is it that "No news is good news" for the Indian economy or is it that all the ideal money is being invested in India where investors see that there is a scope for a short term gain?

note: Sensex data from CapitalIQ

Investing in India? See Blackstone losses first

I read this intresting article on Reuters website:

http://uk.reuters.com/article/privateEquity/idUKSP32390820090120?pageNumber=4&virtualBrandChannel=0&sp=true

where they are speaking of losses made by Blackstone in Indian investments. The article posts a gloomy picture of the PE in India. But what i would like the author is compare it with their perfromance for the same period in the US/Europe. It will be a surprise for them. The global market has taken a plunge which has not spared the likes of Lehman, Citibank, GM, etc.

Yes the stocks listed in the article have fallen down, some by as much as 70%. So what, its still better than the Blackstone share price which had an IPO at $35 in now trading at $5 thats a 85% write-down!!