In the EMs (emerging markets) there is no disillusion in fact there is confidence in long term investments though it is said that some investors are bit confused due to unstable market but there is no disillusion with EMs. In India though there are strong earnings valuations are not good due to rise and fall in oil prices and it will put lot of stress on market. In last year investors had more loss in assets which was at low risk so investors are confused and they feel that investing in EMs is at risk as market is not stable and so EMs are facing credit crisis.
Experts (As seen on TV) say that there is 25% of fall in US dollars which is affecting the EMs and so valuation in India is important and in last few months due to inflation and rise in commodity prices Indian markets is facing a tough time. They also say that 2008 is going to a be a tough year for EMs and investors can expect more in 2009 and 2010. In India as long term investments are doing good so in few years Indian markets are going to be strong.
In India there has been lot of people investing in assets have been diverted also same is the case of stock markets and because of unstable market and inflation individual companies are also facing problems and also they are not stable ,though there is no disillusion in market investors are thinking about the risk and so it said that because of inflation growth has affected and because of growth valuation is affected.Experts say that these three things are involved in each other and they are affecting the Indian markets .