The Sensex bloodbath has put the fear of God in the minds of free market votaries.
 
The global financial meltdown is having a devastating effect on the Indian market, with Sensex breaching the 11,000 level for the first time since August 2006. 
 
Panic is all around, as is evident from the reactions of people associated with the financial market.
 
Almost everyone is unanimous that it will take at least one year to recover from the crash.
 
"The market is hammered in such a way that it will take a minimum of one year to recover. This is the worst crash after the meltdown occurred after the Harshad Mehta scam. The worst hit are real estate followed by IT and banks," said a stockbroker.
 
She feels it is better to avoid investing in real estate business now as it will prove disastrous. "Real estate shares have taken a beating. For example, share of DLF, valued earlier at Rs 1000, has come down to Rs 280," she added.
 
Banks too
 
There is a growing feeling among financial experts that the stock market crash will have a direct effect on the banking sector as well.
 
"Already there have been rumours about the financial stability of some leading private banks. In one or two weeks we will come to know about the effects of Sensex meltdown on the banking sector," said Baiju Sreedhar, a financial consultant.
 
He feels private banks will definitely get affected.
 
Even though there is overall panic in the market, some of the investors are ready to wait for one week. "But investors seem to have lost confidence in the market, as it's been coming down for a while," said Sreedhar.
 
Slow and steady
 
"I always feel such hypes were not realistic as they were not based on true fundamentals. If a share worth Rs 100 is sold for Rs 500, it is only hype, not real. When there are a lot of manipulations in the market, it has to come down and stabilize," said K Srinivasan, veteran banker and financial expert.
 
"Take the Harshad Mehta scam. Even non-existent bogus companies were sold at higher value and suddenly it crashed. Look at the suicide of Kathik Rajaram and his family due to stock market crash. Fortunately, India is not driven by stock market, though our so-called English-speaking intellectuals trust stock market more than anything else," he said.
 
"Finance minister Chidambaram has been talking about total opening up of banking sector and full convertibility. Now even in the midst of American financial tsunami, our financial system is able to remain stable. The FM has been under the impression that American financial system was a great model for others. Now it is proved that our 'slow and steady' financial system is more stable in the world to withstand any crisis," he said.
 
He attributes the current crisis to the 'greediness' of the elite educated class. "The problem is caused mainly by the elite urban educated people. They spoil not only themselves but also the entire system,"

Sharing this view, P Muralidharan, a financial consultant, said India government should retain its core financial institutions in its safe hands itself. "We have decided to put PF money in the stocks for greater return. That doesn't look good."

"Now, all these free market gurus advise governments to take over the bankrupt financial institutions. In America, the middle class people are now sleeping in cars and on the roads. And those who had given triple A ratings for these failed institutions just last month still live in five star hotels," he said.