The epicenter for the global meltdown is the US, but the tremors were felt hardest in emerging market called as BRIC (Brazil, Russia, India and China) countries, during year 2008.
Only indices of Russia and China were worse than India sensex which lost 52% since 1 January 2008. This was the biggest fall for the Sensex in its existence of 22 years.
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Russia RTS -73 %
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China SHANGHAI -65 %
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India SENSEX -52 %
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Hong Kong HANG SENG -48 %
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Japan NIKKEI -42 %
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Brazil BOVESPA -41 %
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US DOW JONES -34 %
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UK FTSE -31 %
The relative higher crash in the emerging market was due to pulling out of the funds by large FII, which were heavily invested in BRIC countries. To see how FII affect Indian stock market, click here.
FIIs had made huge profits in Indian stocks which they booked.
During the year 2008, FII withdrew $13.33 billion from the Indian stock market. Fii have invested $53.1 billion in the stocks of Indian companies till date.
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