Market crash due to inflation, US recession: Assocham

New Delhi, Feb 11: Increased inflation and slowdown in the US economy, has prompted FIIs to gradually withdraw from Indian equity market as a result of which the sensex today witnessed a fall of 833 points, said industry chamber Assocham President Venugopal N Dhoot.

Mr Dhoot in a statement said Reliance Power IPO has been listed and even SBI effected decrease of 0.25 per cent in its PLR has not revived market sentiments as it remained subdued. The Assocham Chief, however, expressed optimism that market would move towards corrections after budget for 2008-09 is presented as expectations are largely that the proposals would be supportive to industrial growth and further bring down the interest rates and extend relief to ''aam adami''.

''Thereafter, the market would resume its usual cheers by again attracting FIIs and public investments,'' concluded Mr Dhoot.

UNI