Why are all the Stock exchanges taking a sudden plunge? Is it a reason to panic or just a Market correction ?
2007-07-29 21:05:01 · 4 answers · asked by Anonymous in Business & Finance ➔ Investing
The market is gone up for a loan time and a sudden plunge is upset every one, the reason behind it is - US subprime market is in denger condition a lots of sub prime lender have a lossssss so to recover it The foreign institutional investors pressed the sell button and gave away shares worth Rs 1,475 crore in the cash market (provisional figures), and along with it major indian companies like Tata Steel, Sterlite Industries, MTNL, HDFC, Reliance Communications, Hindalco and BHEL were the top losers on the bourses.
Thats why the market plunch 600 points.
2007-07-29 21:47:16 · answer #1 · answered by yogi123 1 · 1⤊ 1⤋
It is just business as usual, if a market rises 10% in less than a year what do you expect?
It is a correction which grew from an overvalued stock market and defaults on the secondary mortgage market in the U.S. There is also the continuing problem of twin deficits in the U.S.
2007-07-30 04:45:36 · answer #2 · answered by katerschenko 3 · 0⤊ 1⤋
Typical reaction to the stock market moving upward for so long. A lot of hot money was looking for an excuse to take profits.
2007-07-30 04:21:41 · answer #3 · answered by Houyhnhnm 6 · 1⤊ 0⤋
When interest rates go up, people move from equity to money and share prices go down. Problems will continue for as long as the USA continues to live beyond it's means. However, markets will recover - they've got nowhere else to go.
2007-07-30 04:12:28 · answer #4 · answered by Anonymous · 0⤊ 0⤋