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Why do markets crash?

by Nikhil

Welcome back!

I am Back 2 Blog .

The BSE sensex is supposed to be the barometer of India’s Economy, atleast by a few. When there is a small chaos in the corridors of power the sensex crashes.

This has happened umpteen number of times. What or who are those evil forces causing this.

It is mainly the FIIs.

The FIIs put their money in the markets to reap profits. They are never willing to take risks. These investors are mainly big wigs from London, Hong Kong and Singapore. And the money they put in is not theirs but the hawala money of our very own Indian politicians. So in a way the Foreign Institutional Investors are jus a via media for the hawala Rupee. The rupee in disguise as the dollar.(I don’t have a proof for this, but I have been told by dependable sources)

The FIIs pull out their money whenever there is a confusion. They sell of their stocks , value of shares reduce, market crashes, the Bull Run as in market jargon happens. The funniest thing happens after this SEBI, RBI and FM get into the mess. They blame some “ugly forces”. Never would they directly blame the FIIs as this would shoo them away from the markets and our Forex Reserves would go down. Forex Reserve has now become an issue of prestige for the govt after the much hyped $100 Billion effort. From $ 1 billion in 1991 we are now at about $115 Billion.

The BSE Sensex has become so unpredictable that indiatimes is conducting a predict the sensex contest.

Poor me tried played it a few times, thanks to the volatile sensex I was never close to it.