Why did Indian sensex crash from 21000pts to where on earth it is today surrounded by a short time ago 7-8 weeks?And whats flea market correction?
Answers: the markets fell because of constraint supply rule...
1- more buyers,less sellers-- market go up
2- more seller,less buyers--markets turn down.
and there are heaps macro/micro concerns due to which markets rises/falls.
contained by this case--
markets fell wreak people think
1- us is going into recession
2- subprimes loses to us and worldwide banks
3- apprerication of re vs dollar, hurting indian export
4-indian market are coupled with world market,so sensex will more or less follow world market, few exception aside
5- and people you levelraged instruments, resembling futures and optoins and buy on margins, and when tide goes against you , you are hurt doomed to failure, as you had lately rs 100 but you buy for 400, so that way your together capital go and you are in debt and your broker sell your postions.