Will the Sensex crash to 5000 levels?

[Rniks]

The Sensex in India has already breached near 8K and unless the FIIs stop selling it will see more lows. Should the government take desperate measures to stem more fall?

 

[NOMINDTR]

If you don't ask me when and how, I would like to say "Sensex may crash upto 5000 level"

 

[NOMINDTR]

A Sensex of around 5000 will also provide the lower middle class of India to buy stocks at attractive valuations - which they could not do so at higher prices because a bunch of educated idiots were making asinine predictions and propping up the prices higher and higher.

Dear friend,

Though it is well said, it seems to be ambitious! Majority retailers are always follow the market. Most of them do not enter at lower levels.

And like stated "Educated Idiots", there are "Self Appointed Experts" (could be just a neighbor of a middle class investor) who always prevent him or her from entering the market at lower levels.

I appreciate your view from my heart. But unfortunately it is always difficult for an average market participant to gain proper market education as there are much of noise and aberration in media they use to educate themselves. 90% of information is only for 10% people. What to do?

 

[anand.singh753]

Sensex breaking over a dozen thousand-point milestones in less than a year of downslide, the market experts now believe that even a fall below 5,000-point mark could not be ruled out.

The Sensex on Friday fell below 9,000-point mark for the first time in about two and half years to close at 8,701.07 points, but the experts said the bottom of the current bear-rampage on the bourses is yet to come.

After today's fall of 1,071 points -- steepest ever after a 1,408-point crash on January 21 -- the Sensex has plummeted by as many as 12,500 points from its record high of 21,206.77 points scaled on January 10.

The experts said that more pain could be in store for the Indian market as there are no signs of recovery in global markets and the panic has spread even further after reports of economic giants like the US and the UK heading towards an imminent recession.

"In the current scenario, everything is possible. The current free-fall in the market and the rate of fall can witness the 5,000 levels in another six months," Taurus Mutual Fund Managing Director RK Gupta said.

There could be slight recovery in the coming weeks, but only to be followed by further losses, Gupta said, adding that as long as the bailout does not come for the global economy as a whole, the concerns of recession would continue pulling domestic market down.