Since the news of the bankruptcy (lehman brothers) the Indian market has not been able to recover itself... though the people blame it on the sub prime crisis for the fall, which is true to quite an extent, I personally feel that a lot goes on the part  of  the Indian investor community.

   This also shows our dependence on the foreign capital. Had it not been the participation of the fii and fdi, the Indian market could have never reached the level it had seen in the last 1 year. But this also shows the lack of participation of Indian retail investors. Compared to other countries the percentage of Indian population investing in the Indian capital market is very less, as low as 2 percent. Compared to this the participation in other countries is way ahead.

     This is one of the reasons that our stock market tumbles whenever there is a liquidity crunch in other economies. It is the responsibility of the governing bodies to educate the investor about the benefits of investing. They should encourage public participation in the Indian capital market but illustrating the fact, figures and benefits of investing in the stock market. The biggest misconception amongst the Indian investor community is that of losing the money. In context to investment option they consider investment in stocks as gambling. But the actual results show a completely different picture. On calculating the mean real return for a period of 10 years and beyond it is always the equity that comes out as the winner..