GUEST POST BY RAJU LILLANEY

Reasons for the decline in Share Markets. ( Nifty at 4650 ) 

1. Political Instability

2. Corruption ( Govt. afraid to take any decision about reforms )

3. Euro Zone Problems and recession expected.

4. No FII inflow because of adverse currency movements.

5. Contraction in IIP and earnings of companies

6. Fiscal deficit

Buying opportunities for following reasons.

1. Moderation in inflation leading to decrease in interest rates by RBI in the coming months.

2. New FII's will find investing in equities attractive due to Rupee depreciation.

3. FDI problem may be solved in the next few months