Nifty Looses 8.15 % Sensex Looses 8.37 % in January 2011

It is a cause of concern in the Indian Stock Markets ,as,Nifty Looses 8.15 % Sensex Looses 8.37 % in January 2011. According to Experts the real cause of worry is high rate of inflation and the Credit Policy announced on 25th Jan 11 by the Reserve Bank of India wherein both repo rate and reverse repo rate has been increased by 25 basic points, meaning thereby increase cost of finance and extra burden on the industry . Scams and Black Money (Swiss Bank) and the ongoing political scenario are real cause of concern. FIIs are constant net sellers and also the American economy is on road to recovery. There is definite diversion of funds by FIIs from Emerging Markets to that of US and European markets. February would be the real test for both bulls and bear.