In the world super power is US,and if their prices goes down,its natural that indian market will fall. Two things depends more in falling of market.(1) Dollar (2) Crude oil.
Indian markets have to depend a lot on foreign capital investors for proper functioning of business and firms and hence if their market gets effected the effect in indirectly felt in India too...!
Not only India but also many developing countries are dependent on the US or European market trends.
If I just write about India, our country has good business and economic dealings with many European and American countries. Slight change in price or any factor can affect Indian market. Affect can be even severe due to the value of money.
US markets namely Dow Jones and Nasdaq are the indicators of the world economy along with the European markets like CAC and DAX. Currently the situations is worsening with each passing day in Europe and US. The packages that are announced are only a temporary solution to the main problem which is getting deeper and deeper. Due to this, the American market as well as the European markets are in a deep crisis.
As these markets rule the world, it is obvious that Indian as well as all asian markets take the cue from this markets and if they fall, so do we.
This is really a thinking point that india is growing very fastly but it depends on the uk because value of money are very larger in uk as compare to india.
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Reasons are not too far to seek! When globalization is the buzzword! There have been times when Indian markets behaved in an insular manner but at the moment it is following global cues quite logically as the economic crisis which has engulfed first USA and then Europe is of a serious kind threatening global economic stability.
