The market has been fluctuating wildly in the wake of payment crisis and related things. And SEBI has come out with some recent regulatory measures. The Indian capital market is passing through a very difficult phase and currently is being subjected to all round bad news from all sides. I think once leveraging in equity market is brought under control and all conflict of interest is removed from management of exchanges, governing the system can become better. It will take time for this to happen.
Markets are extremely nervous.
It is ironical that Indian institutions are selling while foreign institutions are buying. Many banks will have to take hits to the bottom-line due to concentrated exposure on capital market intermediaries and exposure to some cooperative banks. We have seen a sustained downward movement in the stock markets worldwide. Market is never a one-way street. The fall in technology stocks has had some sympathetic effect on the old economy stocks, too.