Indian economy

In India the financial market is crashing down and people have developed the mentality that id the emerging market indices fall our index nifty will also fall, keeping aside the nifty support and resistance level. though all Asian market are moving in direction of world indices but still i feel that our economy is still far better as compared to other economy. The bailout and the fiscal packages announced by government is stabilizing the market. The income level of people dint increase but the expenses has increased as compared to income. The companies which did not have exposure to international market are not yet affected. The steps are being taken by government to boost the Indian economy by cutting down the excise duty for automobiles and cement sector in month of December. The RBI has reduced the interest rate. The borrowing rates have been reduced but the lending rates are still high the realty sector may have some benefits due to the rate cut. but the property rates may see further correction. The depression was seen in 1930 and at that time the house were sold at lower interest rate and people started taking loans and that thing as in giving houses at lower interest and latter as the earnings improved and financial started improving and the bubble got burst out which resulted into subprime crisis which resulted into the bankruptcy of bank "LEHMAN BROTHERS". The Indian economy will perform well and currently India is not in a condition to enter into recession. In recession the economy does not result into over production but it happens that the demand for the products get reduced the level of production is same, as the demand get reduced it result into over production in actual it is not over production. Everything in economy goes on the concept of supply and demand. The demand and supply helps in determining the price if the product. So Indian economy is not into recession. For the market follow the strategy “Be Greedy when others are fearful and be fearful when others are greedy”. So it is the right time to invest and keep your portfolio diversified with different sectors. The swings in market will go on, as we have seen that as the equity are having down turn gold prices are at high. The yellow metal has shown the spurt just a blip caused by the market forces. Investors around the globe have turned in to the buying of yellow metal to get good returns on investment. The refinery in South Africa have turned to seven days a week to keep up with the growing demand for gold coins. Even the Australian has added the production on weekend to cope up with demand. Now once gain we can see that the demand for coins is increasing which is helping to generate the employment as the refinery is working on weekend to cope up with the demand. The major downfall and fear was seen in market with the collapse of LEHMAN BROTHERS. The economy all over had fear of hyper inflation but with the collapse of Lehman Brothers stock market plunged and government all over had a cut in interest rate sharply.