Stock markets have fallen, (for good) by about 25-30% in the last fortnight. Thats' still early days, we are yet to catch-up with the complete sell-off targets, that FIIs and the real movers of Indian markets have on their minds. It's quite obvious that the very liquidity that is hitting the markets is very much locked in the highly over-valued real estate market.
Unless this liquidity is unlocked, there is very to no hope in getting the liquidity back into the system.
However, it should be noted that unless people realize that fundamentally, when a miniscule apartment sells for 1/2 a million, its' time to leave either the city, or the markets.
Whenver the liquidity in real-estate is triggered, rest assured that Indian banks are gonna start announcing losses just like their US counterparts. Remember, even Indian banks have been dispensing 90% loans, even a 10-15% fall in real-estate might trigger an amazing real-estate crisis, rather a banking crisis, watch out, we are very close, and the ice is wafer thin ahead.
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