The ghosts of 2008 are revisiting us again. What was a sub prime induced debt crisis has now metastasized into a bigger debt crisis involving sovereign debts and several nations seem threatened. While India was primarily not affected by the sub prime, we had failed to use the period of a slowing world growth to reduce risks to our current account by way of garnering better inflows of foreign exchange, whether in the form of FII or the more desirable FDI.
From a trader`s perspective this means the bear rally is over and the hibernating bears are awakening for a fresh onslaught on the markets.
Here are some monthly charts: