Finally there seems to be some rationality that is gaining ground in the Indian markets. Select stocks had run up so fast, that their valuations had reached 70 times in terms of p/e. Sanity seems to be coming back real fast.
1) Worries over MAT demand from government to FIIs.
2) Worries over a poor monsoon.
3) Poor results from IT companies like Infosys, HCL Tech, Wipro and TCS.
4) A likely rise in inflation due to poor monsoons.
5) Key bills like the land acquisition bill likely to get stalled because of farmer suicides.
6) GST Bill in a limbo because of opposition from Congress, BJD and AIADMK.
A further downside in the markets cannot be ruled out.