August 14, 2017

Did markets correct because of SEBI action against 300 shell companies?

The media is always after 'cause and effect' so you will read everywhere that markets corrected because of  SEBI action against 300 shell companies.

Really?

Here is the NIFTY chart showing the correction. The other charts are global market indices which have corrected exactly at the same time.

So does it mean that the SEBI action had a strong effect in other markets also? Obviously not.

NSE NIFTY



UK FTSE



US S&P500



China SSEC



Hangseng chart



Incidentally all the local media in above countries will have their own explanations as to why the fall happened. And they will immediately come up with another reason when you tell globally all markets corrected at the same time.

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