Why had the market crashed

By Vijay Kumar

The stock market lost more than 2000 points resulting in Crores of Rupees wiped off. Investors were at a high pitch of anxiety. Most of the market pundits thought that one of the major reasons for stocks erosion, had to do with the pull back of portfolio investment by foreign investors. But analysts pointed out that the trend was witnessed all across the emerging markets, as global investors worried over higher interest rates and continued to bail out of riskier. The market gurus believe that the decline was likely to continue until the pre-budget buying. The mystery that no one is able to unravel is: why are the dozens of mutual funds sitting on the sidelines and do not stoop to pick up equities at such attractive valuations?

Sounds familiar? This is not about the Indian Stock Market. This is what the “Dawn” reported today about the Pakistan Stock market. The paper also reported that there is apprehension that tax may be levied on

sale of shares

bank advances

real estate

financial services

perks and benefits of the salaries class

Seems to be – not much of difference across the border.