Red signals for the bulls

Indian markets face several headwinds

The law of gravity caught up with the stock market on Friday with the Sensex seeing its worst decline in 10 months. The fall was a culmination of several factors. For one, the fundamentals of the Indian economy are not in great shape and the gross domestic product growth rate has decelerated for five straight quarters and, crucially, fell below the six per cent mark in the June quarter. The government’s reported stimulus programme to boost growth is further raising doubts about the fiscal deficit going off track. Markets are also worried that global issues — such as the rise