Decline in the markets ,India Vs US



Was going through this article .It talks about 42% decline in Indian markets Vs 15% slide in US markets .It also gives some figures on GDP to Market cap ratio.

India which has not faced a serious crisis like the US has suffered most. This is surprising considering the fact that the consumption pattern in India has not significantly slowed down.This sharp decline may be because, Sensex rose faster than US markets when the bull run was on.

But the main reason can be attributed to maturity in equity markets. We are still dependent on FII strength to boost our markets. Domestic savings should be encouraged to the healthy long term equity investment route. This will help our indices less dependent on FII action. We have a long way to go there, but I feel that the journey has already started , although slowly.

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