Stock Markets Falling....

The Indian stock market is behaving rather erratically these days....the movements are in extremes.. why is it so....is there real mad scramble to come out or it is greedy to make more and more...which causes this kind of situation....

The fundamentals of economy is very strong with all the relevant parameters showing promising signs...then why this downfall in the sensex....big guess...welcome all to share their views...my views are

1. Dollar is gaining against INR

2. Increase in Interest Rates or atleast fear of increase in interest rates

3. Emerging of other attractive investment destinations...

4. Shift in investment avenues...say Equity to Commodity

5. Perception of peaking

6. Fund redemption pressures

7. Systems failure etc.,

we can keep writing or discussing on each factor but the real reasons only the players know...what prompts them to buy or what makes them to sell...is anybody's guess...Ultimately the market is becoming more and more sophisticated and only informed and knowledgeable players can play the investment game and common retail investors have to be extra cautious before putting his hard earned money in the market....