Indian markets suffered most in yesterday’s global market plunge on worries about a global recession.

Even markets in the US, where the problem actually started, closed with just 3% loss. Dow Jones lost 3.59% and NASDAQ lost 3.23% in yesterday’s session.

But Indian indices suffered heavy losses with Sensex down 10.96% and Nifty with a record loss of 13.9%.

Yesterday the downturn started with news from Asia. Japan’s electronics majors Sony and Korean electronic giant Samsung reported a big dent in their profits due to economic crisis and currency exchange differences.

But the Japan and Korean indices lost only 9.6% and 10.57% respectively, better than Indian indices.

By afternoon Indian markets plunged further when the news came from Europe that Britain’s GDP shrunk in last quarter and is clearly going for a recession.

But London FTSE closed with a loss of just 5% even though during intraday it went down to a maximum of 9% loss.

All major world markets, where the actual problem started, performed better than Indian Indices. Indian Indices responded too rapidly to global problems than others.

This is mainly because Indian markets are controlled by foreign investors.

Some analysts say that yesterday’s crash was because of Reserve bank’s credit policy. Markets had anticipated some rate cuts. But that is not true. Three times RBI reduced CRR this month and also cut Repo rate once. There was no positive trend in Indian markets when RBI announced the rate cut.

Also as per history Indian markets zoom to new highs during Deepavali time every year. But this time Deepavali also didn’t help markets.

This clearly indicates that Indian markets are moving as per FII’s wish and neglecting Indian events like RBI policy change, government intervention, Indian festivals etc.