How to Start a Business During the Recession

Here, drawing from his own personal experience, he emphasises that start-ups that began operations recently and employees who have been laid off still have hope if they want to become an entrepreneur.

The global recession has meant that large corporates worldwide are downsizing their staff, production and expenses. Even some of India's [ Images ] biggest companies have laid off several employees and might continue doing so in the coming months.

Agreed the economy is in bad shape. But remember great opportunities exist even if an economy is in bad shape. It is those who capitalise on these opportunities and sustain themselves even through tough times who will rule the economy in the coming years.

Folks looking to start a new business, Indian startups, small and medium enterprises, SMEs, need to look at the market in a positive way and find their way towards a great future.

Young entrepreneurs, start-ups as well as employees who have got laid off, should consider recession as nature's plan to bring fresh perspective and new motivation to the world. Future leaders are current individuals who believe in change, globalisation, new strategies and innovations.

The trick to survive is...

The problem we all face is that, when the economy is making very fast progress, the basics are forgotten. When it is the recession, it is about getting back to the basics.

1. Serving the basic needs

Imagine every individual has some basic needs like food, shelter, clothes, healthcare, travel, electricity and water. When market is cutting down their spending, basic spending is always going to stay the same; it just needs more cost effective solutions.

Hence the opportunities coming out of the recession shall be: cheaper food, cost effective housing, cheaper clothes, cheaper travel and so on...

2. Using technology to scale

Technology is the way to scale. It is the technology that enables us to keep in touch with our friends. It is technology that lets us connect to millions of individuals, know and share information that would otherwise take years to reach -- with the cost that every common person can afford. Businesses not just need to consume technology, but also use it to reach broader audience.

3. Staying global, thinking local

Recession puts business models at test. Recession is going to demand reaching maximum audience for the same investment in production happening in the local market. Anywhere in the world, basic needs of people remain the same. The trick is serving global audience with the product designed for local audience.

4. Cost control with bootstrapping

Venture capital is going to be hard to find, one needs to bootstrap the business with very less resources and still be able to provide the best service quality.

5. Less liability, more utilisation

Trick will be to lessen the fixed costs of the business, so even if the sales get affected for some time, it does not put burden on the company's accounts.

India's core strengths

India has witnessed impressive economic growth in the last decade allowing India's youth to be equipped to take the recession head on. We have availability of all possible resources that shall help us to stay basic and simple and at the same time produce service and products of global quality at the lowest cost like:

1. Internet's reach to remotest areas

India's Internet infrastructure is a revolution. India has over 50 million internet users and increasing every year. Aggressive Wi-max expansion from companies like BSNL can quadruple the users in the next 10 years. This means that even the individuals from India's remotest regions can now showcase and offer their businesses to customers based anywhere globally.

2. Mobile telephony services

India has over 246 million cell phone subscribers. This number is only second to China. It is said that all you need to run your business is an Internet and a cell phone. India has both of that in abundance. Some cell phone carriers allow calling US and Canada [ Images ] at just Rs 1.99 per minute! Even if you stayed in US and bought a prepaid cell phone, it will cost you Rs 5 per minute for an incoming and outgoing phone call.

3. World class infrastructure IS THAT SO? I THINK NOT?

India has experienced the world's finest infrastructures. Malls, multiplexes, corporate parks, residential areas built in India are some of the best by global standards. Indians have already seen global infrastructure locally.

4. Global exposure of youth

Indian youth is travelling worldwide and serving customers already aware of the best global service standards.

Business opportunities in recession

In India: Food, power, water, education, local transportation

The Indian economy is not supposed to enter recession for the next 20 years at least. If one travels just a few kilometers away from our metro cities, you will find that people still don't have basic facilities like electricity for 24 hours, water and education. Businesses that produce green energy, water storage and supply basic education shall have a healthy future.

Globally: Cost effective travel, food, legal services, healthcare

India is still one of the low-cost places worldwide, which puts us in great advantage to be direct solution providers for countries with stronger currency and less qualified manpower. Companies that just used to work as contractors for outsourced work can now become direct service providers, giving the solutions at an even cheaper rate. Legal services and healthcare is a great opportunity.

A self example

Some examples below to show how the above strategies are given best shot (take from my company internally).

* We take private aircraft owned by corporate or individuals on a contract basis, instead of ordering new ones, reducing our liability. This way we have added thousands of aircraft to our network
* The automated aircraft arrangement system supports over 25,000 airfields worldwide. And while the business is headquartered in India, we serve customers from any remote global area
* To make use of over 400 private and civilian airfields in India for private travel, we are adding cost effective planes (single and twin engines) to our network with the help of third party operators aiming to provide private flying solutions at the same cost of commercial flying with an added flexibility of flying 'anywhere, anytime'
* Cost effective setup with total automation, less liability, global service

The bottom line is that India's youth does not need to get affected by the whole media hype about global recession.

The best opportunities are out there in the market right now and all one needs to do is find them.

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How to Get Into a Top Business School

10 Tips:

1   : Speak from the heart
2   : Know what the GMAT score means
3   : Find your fit
4   : Don't try to game the process
5   : Visit schools
6   : Know what you want and why you want it
7   : Be consistent
8   : Don't be desperate
9   : Apply when you're ready
10 : Know the admissions officers are people too

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How to Write a Business Proposal

To write a business proposal that gets the business requires plenty of preparation and work. The most common mistake made by business proposal writers is a lack of understand of the client’s business, industry and challenges.
Because the business proposal process can be time consuming, it’s easy to want to take the short cut and create a simple template for submitting a proposal. Yet, this quick cut and paste methodology is a path to getting your proposal tossed and your bid out of the running.
To write a business proposal worthy of your clients attention and able to solve their most vexing problems requires information. You need to clearly understand the issues the client is facing while leaving your own assumptions and immediate solutions on the table.
If you want your business proposal to stand out in the sea of competing firms, the essential step is to thoroughly interview your client.
The First Step in Writing a Business Proposal
Getting a client’s business is all about one thing… selling. The best sales person does less talking and more listening. Craft a list of essential questions to understand your potential customer’s business. Here are some questions to help you build your interview question list:

• What is the current challenge your business is facing?
• What is the greatest challenge your industry is facing?
• When did you first determine this business problem existed?
• What have you done in the past to address this issue and what was the outcome?
• What is the best outcome you wish to achieve with this project?
• What current information does your company have to solve this problem?
• Will our firm have full access to the stake holders involved in this project to ensure success?
• Is your company looking for recommendations or also help in the implementation of those recommendations?
• When do you want this project completed?
• To implement our recommendations, what obstacles will be necessary to overcome?
• Do you have a set budget for this project?

Formulating a list of potential questions to ask prior to the meeting will help save any misunderstanding and create the foundation for a successful business partnership.
Before you meet your potential customer, take a few deep breaths and remember they are seriously interested in what your business can offer. Otherwise, they wouldn’t have taken the time to meet with you.
Once you have engaged the client and extracted the necessary information, you now can write a business proposal that has much greater odds in closing the deal.

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How to Write a Formal Business Letter

How to Set Out Your Business Letter

You'll write numerous different letters in the course of your business writing, but they should all be set out in business letter writing format.

But just as with documentation of essays, so, too, with business letters -- there's no one right way of setting out. The important thing is to experiment with the different ways and then to settle on one way and to stay with it. The following business letter examples are suggested layouts for business letters using letterheads and fully typed letters.  

Note: these days it is customary to type all business letters unless specifically requested to hand-write them. 

What You Should Write in a Business Letter 

According to Strano, Mohan and McGror, in their book, Communicating!, a business letter has five main parts:

1. the heading

2. the date

3. the opening

4. the body

5. the closing.

1. What to Put in the Heading of a Business Letter

This is your name and address.

You can use your fancy letterhead or just type up your business name and address.

The letterhead address can be positioned anywhere on the top of the page: centred, left side or right side.

However, if you're typing the business address, it should be located in the top right-hand corner.

2. How to Write the Date in a Business Letter

The date is very important, since it can be useful in determining priorities, for filing and it also can have legal ramifications.

In a typed address letter, the date goes immediately under your address.

In a letterhead letter, the date can go on the left-hand side, or the right-hand side, immediately under the letterhead.

Write101.com
32 MacDonnell Road
MARGATE BEACH 4019

1 January 2020

Note that the suburb name is in capitals and that there is NO punctuation in the address.

The method of writing the date shown here is the easiest and least likely to lead to confusion. It looks neat and is clear and concise.

Always write the name of the month; if you are dealing with overseas clients or markets, or even with people who were born overseas, you can run into all sorts of problems if you only use numbers:

11-3-2020 could be 11 March 2020 OR 3 November 2020, depending on where you come from!

3. How to Write the Opening of a Business Letter

This is the:

• Name
• title (if any Manager, Principal etc)
• address of the person to whom you are writing and the greeting or salutation.

This information always goes on the left-hand side of the page, starting one line lower than your business name and address and the date.

Write101.com

32 MacDonnell Road MARGATE BEACH Q 4019

1 January 2020

Mr Garth Hopper

Manager

Country Publications

PO Box 123

SYDNEY 2003

Dear Garth,

─────────────────────────────────────────────────────

or

Write101.com

32 MacDonnell Road
MARGATE BEACH 4019

1 January 2020

Mr Garth Hopper

Manager

Country Publications

PO Box 123

SYDNEY 2003

Dear Garth,

4. How to Write the Body of the Business Letter

This is like the message in your memo and it follows the same rules in that it should be:

• clear
• concise
• courteous.

I know I've said that before (a couple of times) - it bears repeating.

The way you organise the body of your letter will depend on the reason for writing it ... naturally.

What Should Be Included in a Business Letter

When writing a business letter, you must be sure that no part of your letter will be misunderstood. This is why the language you use should be simple. There are no prizes for using the biggest words in a business letter - especially if your reader is not familiar with the words and has to waste time finding out what you mean.

Worse still - if you are not familiar with the words you've used - you make yourself look a right twit! And that is definitely not good for business.

Time is money these days, so you need to ensure that you make your point as quickly as you can in any correspondence.

Like any other piece of writing a business letter should have a beginning, a middle and an end.

It doesn't matter how short a letter is, the important thing is to communicate your message effectively. Don't feel you have to 'fill up' the page to make it look 'balanced'.

5. How to Write the Closing of a Business Letter and Sign Off

This includes the final words to your reader - the bit that tells him or her what action will follow or thanks him or her for any help given. It also includes the 'signing off' and name of the writer.

It is customary to sign off, 'Yours faithfully' if it is a formal business letter or if you don't know the name of the person; you sign 'Yours sincerely' when you do know the name of the person.

It is acceptable to use less formal closings -- 'Kind regards', 'Regards' -- if the whole tone of your letter has been the same, but don't end a very formal letter in this way.

Your closing signature can be placed on the left-hand side of the letter (which makes it easier on the typist) or on the right-hand side -- in line with the address (if the address has been typed in the right-hand corner and / or with the date (if it has been placed in the right-hand corner).

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How To Value A Stock

Forget name recognition and stick to fundamentals when investing.

You are one lucky guy if, back in 1997, you beat the crowd and bought stock in a new Internet book store called Amazon.com. Back then, if you'd ponied up $1,000 to buy shares in the firm at $2.50 each, your stake would now be worth $31,000.That's stock-picking's appeal: Buy the right company and make a bundle. But you can also wind up broke. Consider a not-so-lucky investor who bought $1,000 worth of Amazon stock at $105 a share in 1999. The shares are now worth $78 each, and the entire holding, a total of $743.
The point is that stock-market investing is a tricky business, and on average, it is mathematically impossible for investors collectively to beat the market. Don't even try--if you do, chances are the only one who'll come out ahead is the broker who skims a commission off each of your trades.
In Pictures: How A Billionaire Values Stocks
That is not to say you should avoid stocks altogether. In fact, stocks offer one of the best ways to grow your savings over the long term, having returned an average of 6% annually after inflation over the past century. But rather than regard the market like a speculator--constantly swinging for the fences and often striking out--the smart thing to do is act like a long-term investor. That means either buying stocks you intend to hold on to for years or decades, or, safer still, owning low-cost index mutual funds or exchange-traded funds (ETFs).
However you decide to invest, it helps to know the basics of valuing companies and their stocks.
Owning a stock means becoming a fractional owner of a company. If the enterprise thrives, you get a cut of the profits, either through a rise in its stock price that reflects its growing earnings power, regular payments known as shareholder dividends, or both. If the company becomes sickly, you're likely to suffer too, as the price others are willing to pay you for its stock sinks and its dividend payments are cut or suspended to save cash.
The varying assessments of a stock's prospects are reflected throughout the trading day in its fluctuating price. If more people want to own a stock, its price goes up. If fewer people want it, the price falls.
Knowing whether a stock is cheap or expensive is a tricky business. The simplest measure--yet one that has proved quite useful over time--is the so-called price/earnings, or PE, ratio. It represents the current price of a stock divided by what the corporation earned for every share outstanding over the past year.
If the stock is trading at $10 per share and the issuer earned $1 for each share outstanding over the past year, the PE ratio is 10. Over many decades, stocks have traded at a PE ratio of around 15 on average, meaning that investors have been willing to pay $15 for every $1 in net profit the company booked over the previous 12 months.

If the PE rises above that level, it typically means investors are expecting the company's earnings per share to rise. If the PE is lower, it often means the market expects earnings to fall.
Google ( GOOG - news - people ) is currently trading at a PE ratio of 28. The reason it's so high is that investors, in aggregate, expect the company's earnings to rise dramatically, as they have the past few years. Union Pacific ( UNP - news - people ), on the other hand, has a price-to-earnings ratio of 10 and is not expected to grow earnings much in the staid railroad business.
When someone bought Amazon at $105 in 1999, the company did not have any earnings at all. Instead, the share price reflected investors' enthusiasm about the prospect for Internet retailers to earn big profits in the future. In retrospect, their hopes were overblown, and the prices of many e-retailers collapsed when that reality hit home.
One way to avoid buying into similar duds is to favor companies that pay dividends. These are payments a business makes out if its earnings on a regular basis (typically once per quarter) to its shareholders. Many highly speculative stocks have no earnings and pay no dividends.
Another reason dividends are important is that they represent roughly half the profits investors have earned on stocks over the long term. Dividend-paying stocks tend to be issued by established companies, like 
A company's dividend is measured in terms of its yield. This is the percentage of the stock's current price that you get back through dividends. If you pay $50 for stock in a company that pays investors $2 per share in annual dividends, its yield is 4%. That's as much as you're likely to get these days in a bank savings account or from a highly rated corporate bond. If, instead, you pay $100 for a stock paying $2 a year in dividends, your yield falls to 2%.
If high dividends sound like a good deal, consider a low-cost index fund that specializes in high-dividend stocks. Most are easy to find by screening for mutual funds or ETFs by category, or searching for funds with the word “dividend” in their names. But remember: Other investors know as much about dividends as you do.
In the long run, owning an index fund that invests in the entire market is likely to do just as well as a high-dividend one--and a far sight better than a series of hot stock you bought based on the advice of poker buddies and cocktail-party tipsters.

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How To Value A Business

Accurately valuing a small business is often the most challenging part of the process for prospective business buyers. However, it doesn't have to be an overwhelming or difficult undertaking. Above all, you should realize that valuation is an art, not a science. As a buyer, always keep in mind that the "Asking Price" is NOT the purchase price. Quite often it does not even remotely represent what the business is truly worth.
Naturally, a buyer's valuation is usually quite different from what the seller believes their business is worth. Sellers are emotionally attached to their businesses. They usually factor their years of hard work into their calculation. Unfortunately, this has no business whatsoever being in the equation.
The challenge for you, the buyer, is to formulate a valuation that is accurate, and will prove to provide you with an acceptable return on your investment.
There are several ways to calculate the value of a business:

• Asset Valuations: Calculates the value of all of the assets of a business and arrives at the appropriate price.
• Liquidation Value: Determines the value of the company's assets if it were forced to sell all of them in a short period of time (usually less than 12 months).
• Income Capitalization: Future income is calculated based upon historical data and a variety of assumptions.
• Income Multiple: The net income (profit/owner's benefit/seller's cash flow) of a business is subject to a certain multiple to arrive at a selling price.
• Rules Of Thumb: The selling price of other "like" businesses is used as a multiple of cash flow or a percentage of revenue.

Let's look at each to determine what's best for your purchase: Asset-based valuations do not work for small business purchases. Assets are used to generate revenue and nothing more. If a business is "asset rich" but doesn't make much money, how valuable is the business altogether? Conversely, if a business has limited assets, such as computers and office equipment, but makes a ton of money, isn't it worth more?
Income Capitalization is generally applicable to large businesses and most often uses a factor that is far too arbitrary.
The "Rule of Thumb" method may be too general since it's hard to find any two businesses that are exactly the same. Valuation must be done based upon what you, as the buyer, can reasonably expect to generate in your pocket, so long as the business's future is representative of the past historical financial data. Notwithstanding this, the "Rules of Thumb" methodology is an good place to start but is a bit too broad to consider by itself.
The Multiple Method is clearly the way to go. You have probably heard of businesses selling at "x times earnings." However, this can be quite subjective. When buying a small business, every buyer wants to know how much money he or she can expect to make from the business. Therefore, the most effective number to use as the basis of your calculation is what is known as the total "Owner Benefits."
The Owner Benefits amount is the total dollars that you can expect to extract or have available from the business based upon what the business has generated in the past. The beauty is that unlike other methods (i.e. Income Cap), it does not attempt to predict the future. Nobody can do that. Owner Benefit is not cash flow! It is, however, sometimes referred to as Seller's Discretionary Cash Flow (SDCF).
The theory behind the Owner Benefit number is to take the business's profits plus the owner's salary and benefits and then to add back the non-cash expenses. History has shown that this methodology, while not bulletproof, is the most effective way to establish the valuation basis of a small business. Then, a multiple, based upon a variety of factors, is applied to this number and a valuation is established.
The Owner Benefit formula to use is:

Pre-Tax Profit + Owner's Salary + Additional Owner Perks
+ Interest + Depreciation less Allocation for Capital Expenditures

Why Add Back Depreciation? Depreciation is an expense that allows a business to deduct a certain amount of money each year from an asset so that its purchase value is reduced by its overall useful life. As an example: if the business buys a $25,000 truck and its useful life is estimated at 5 years, then each year the company can deduct $5000 off its income to lessen its tax burden. However, as you can see, it is not an actual cash transaction. No money is physically leaving the business or changing hands. Therefore, this amount is added back.
Why Add Back Interest? Each business owner will have separate philosophies for borrowing for the business and how to best use borrowed funds, if necessary at all. Furthermore, in nearly all cases, the seller will pay off the business's loans from their proceeds at selling; therefore, you will have use of these additional funds.
A Note About Add-Backs After completing any add-backs, it is critical that you take into consideration the future capital requirements of the business as well as debt-service expenses. As such, in capital intensive businesses where equipment needs replacing on a regular basis, you must deduct appropriate amounts from the Owner Benefit number in order to determine both the true value of the business as well as its ability fund future expenditures. Under this formula, you will arrive at a "net" Owner Benefit number or true Free Cash Flow figure.
What Multiple? Typically, small businesses will sell in a one-to three-times multiple of this figure. Now, this is a wide range, so how do you determine what to apply? The best mechanism I have found is that a one-time multiple is for those businesses where the seller is "the business." In other words: "as out the door goes the seller, so too can go the customers." Consulting businesses, professional practices, and one-man businesses come to mind.
Businesses that have a strong track record, repeat clients, historical pattern of growth, more than 3 years in business, perhaps some proprietary item, or an exclusive territory, a growing industry, etc., will sell in the 3-times ratio. The others fall somewhere in-between.
So now the big question: what number/multiple do you apply to the Owner's Benefit number? The answer is simple: nearly all small businesses will sell in the 1-to-3 times Owner Benefit window. Of course, this is a very wide range.
Also, the actual total Owner Benefit figure will impact the multiplier. As the Owner Benefit number increases, so too will the multiple. As an example, a business generating $200,000 in OB, may be worth a 3 times multiple, but one generating $500,000 or $1,000,000 can be worth a four or five times multiple.
The Rules to Apply To Establish A Multiple: You also want to calculate the Return on Investment (ROI) that you can expect to achieve when buying a business. Let's say that you have $100,000 for a down payment. If you go to Las Vegas and let it rip on "17 black," well you should be entitled to enormous odds. Wouldn't you agree? On the other hand, if you invest it in commercial real estate, which is a solid, stable investment, then 10% return on your money seems about right, doesn't it? In fact, when the real estate market heats up, the return cvan diminish to 5% or so, and still investors are satisfied.
Buying a business is clearly a greater "risk" but definitely far less than gambling it at a casino and so you should expect something in-between. I've always felt that a 25% return on your investment should be the minimum and you can, if negotiated well, get as high as 35% -50% ROI.
If You're New At This, Here's What To Do:

• If you don't know how to read an income statement, then learn. It's important for this process. It's simple, and can be done quickly.
• Work with your accountant, if necessary, to determine the true Owner Benefits of the business. Be careful about the add-backs. Make certain that any benefits being added back are not necessary expenses needed to run the business.
• You can only add back something that has been expensed.
• Calculate a multiple in the 1-3-times window based upon the business's strengths and weaknesses. Note that the multiple will increase along with the Owner benefit figure.
• Determine your investment level and an acceptable ROI.
• Understand that value is personal.
• If the business is right for you, it is all right to pay a slight premium, but not to drastically overpay.
• Consider applying other valuation formulas simply as a test to your figure.

Professional Valuations: Do You Need One? For most small businesses, hiring a professional to perform a valuation is not necessary. First of all it is expensive, and more often than not, it simply does not reflect reality. I read a valuation recently on a local company handling specialized telecom components in a very restricted marketplace doing $700,000 a year in sales and netting $100,000. The valuation started off: "The company is focused upon the specialized B2B telephony arena and operates within a broad industry which generates annual revenues of $42 billion in North America. Leading competitors include Nortel, Cisco….." I threw out the entire report after reading that one sentence. Why? How on earth can you possibly compare a $42 billion dollar industry and a $700,000 local distributor of telephone systems? Don't waste time or money getting a professional valuation done for a small business acquisition. Let the seller do that if they so choose. If you want to look at a variety of scenarios, there are some very good, inexpensive software packages available that will do the same thing at a fraction of the cost.
The Key Points:

Remember that valuations are not scientifically based; they're subjective. Use a variety of methods. Owner Benefits is the number on which to base your multiple Uncover how the seller established the asking price Valuation is a personal formula - What's the business worth to YOU? Consider the potential return on your cash investment

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how to start online share trading ?

was one among the common man who was watching the market silently but sounds from media and analyst’s everyday crossing decibels. Let me also contribute to that since I have some regular visitors to my site.
Remember it is market psychology that drives the market now and not rationals. When we are emotional we don’t think about what we do and simply utter words and the market is behaving in the same way.
As I always said don’t be a herd in the market. Have your own taste of success or failure in the stock market. If you really study the fundamentals of the company not by Ratios or High funda financial terms but by common knowledge it will form the basis first in most of the times.
First let me put my views on the market.
What’s the reason for Bull Run till now?
It’s simple. The value of Indian companies were reaching heights because we had investors buying from outside.
We have to agree that it was over valued to a certain extent because of the bullish mentality of FIIs and the credit availability terms they had like less interest rates etc.
What happened suddenly and markets became bearish?
When credit was tightened and interest rates were hiked in US most of the mortgage loans were on floating rate and many people defaulted.

• This led to liquidity crises for lenders.
• There arouse a demand for money in US market.
• FIIs so who needed money started to sell their investments in India to get back money for their livelihood and hence notional value of Indian stocks are going done.
• Indian economy is certainly insulated.
• Indian economy in terms of imports is not much dependent on US.

The good part of the story is that unlike China, which had an export oriented economy, the Indian economy was based on the domestic market. The India’s trade theory is changing a lot as it is turning out to be more of a manufacturing export oriented country. The net trade of services done by India accounts to about just 22% just reflecting the risk on trade services is tried to be minimized. Also in the current scenario the trade practices of India with US has decreased and on the other hand has relatively increased with China reflecting out that the risk of US recession has been deflected.
Also recent crisel research indicates

• Indian banks have limited vulnerability. (CRISIL RESEARCH).
• Indian banks’ global exposure is relatively small.
• International assets at about 6% of total assets.
• Even banks with international operations have less than 11% of their total assets outside India.
• The reported investment exposure of Indian banks to troubled international financial institutions of about $1 billion is also very small.

What’s Behind Indian Companies?
Indian companies’ notional value of its share prices has gone down but nothing like mortgage crises in US.
They are strong on the asset base and in terms of fundamentals.
Just take a company like HERO HONDA. Just let’s look from layman point of view. I had invested two years back and it never went up and it is going up now. In an average Indian mindset this bike is something very common. The availability of credit will impact the sales but it won’t have a drastic impact since it is almost a necessity as far as Indian market is concerned when compared to other industry. I am not saying blindly buy by this. Take this as core then do all fundamental and technical analysis and ponder on it.
Indian companies’ debt equity ratios are decent. Nothing like there is an internal failure in terms of technology or accounting malpractice.
Only thing is companies in IT sector got projects from US and when their economy is down no projects and hence no profit and its effect will be there in other industry as well.
So the basic thing is that there is money problem which Indian investors thought that their investments will go up but no one to buy their portfolios. Others who has gained some profit turned towards safer side seeing the risk in the market.
RBI measures will benefit banks on short run and companies on short run  but the pumped in 1.4 lakh crores by CRR cut and others will be useful for stabilization if the companies  gain back their  money which they have as inventories before the money pumped by RBI is eroded as working capital.
This is a slow process and it will take nearly a year for the positive sentiment to gain back in the market but our companies are fundamentally strong with less overseas exposure in their investments in the collapsed financial institutions.

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