India's Markets Could Well Recover. But Not Because of What You Think

have been falling steadily for more than a month. The benchmark Nifty 50 index is down 8 percent. Reliance Industries, our most valuable company, has dropped nearly 20 percent from its all time high.

Despite the fall Nifty has gone up almost 25 percent in one year. The same money kept in a fixed deposit would have earned one-third of that amount. So, long-term investors have a long way to go before they start losing money.