In the midst of the financial turmoil across the U.S., the Asian markets have also been hit very hard. The Sensex fell below the unexpected 9000 mark registering a 2 year low. The last time the Sensex had dropped this drastically was in June 2006. The Reserve Bank of India (RBI), the governing body of India, has been taking drastic efforts to keep the situation under control but its effect is very minimal.
Earlier the RBI had announced cuts in the Cash Reserve Ratio (CRR) and also Repo cuts but all these efforts seem to go in vain. Another problem facing the RBI and India is the falling value of the Rupee. It is nearly touching the Rs.50 mark against the dollar. It is certainly bleak times for India as well as the whole world with such sorry stories being reported from most of the countries.
Everyone is waiting for the markets the hit the low and start bouncing back after the storm. But as things are going only a brave person would be able to predict the bottom as things are going from bad to worse day by day.