I beg to differ. india is largely (not completely) unaffected by the global liquidity crisis. indian eco is more internal driven, despite all hiccups the eco is still growing at 8%, with the $ falling, exports have become attractive which would be in great demand in US due to the cost competitiveness. the market is falling because of the pulling out of FIIs from the stock market. i think we should bottom out soon, and have a steady rise. my estimate of the fair value of sensex is around 14000.

this is the right time to pickup good value bargain in good stocks like L&T, BHEL, Unitech (do not discount its rental earnings). IT stks are the ones which may take a beating due payment defaults and lack of fresh orders from US. so now pick up good indian stks which have a customer base in india....

You see what is happening today! I appreciate your view. However, look at this situation. FIIs need money in their originating countries and they are taking the money out from market. There is larger sales than demand. Obvious result is fall in market. As far as estimation of fair value of sensex is concerned, no index can be valued correctly because it is a math of various things which are really complex and at the mercy of investors. Economy is growing at 8% (I doubt this may be election gimmick by current Govt. to gain more votes showing higher eco growth). Being revised on a regular basis down from 9% estimated earlier. This may get revised (downwards) later in the year. I am not trying to be a pessimist here. I too have some investments in market. The real situation can not be avoided. Let us hope the markets rise from here....