Bombay Stock Exchange Index Sensex plunged 13% in last two trading sessions, 20.4% in last one week, 34.8% in October and 43% in last 32 trading sessions after 9th September 2008.

In last 9 months Sensex crashed 59.23% compared to just 41.14% drop in Dow Jones and 45% drop in FTSE, where the economic situation is far worse than India.

Even when Sensex crashed more than 20% in a week Government of India is not taking any series action to save the market when government in other countries are pouring billions of dollars to save their economy and markets.

Reserve Bank of India had reduced CRR and Repo rates but analysts feel that just liquidity increasing methods alone will not help in this kind of strong bearish trends.

Retail investors and funds are waiting with lots of cash but here problem is lack of confidence. Every day market is falling and nobody knows where it is going find a bottom.

So investors expect some strong measures from Government to boost investor confidence. Last week China removed tax on equity transactions.

Indian government is repeatedly assuring investors that India’s growth story is intact, but that doesn’t help to regain investor confidence at a time when markets are falling 5 to 10 % every day.