The Indian markets are being beaten black and blue in the last two weeks and the government is constantly at its wits end, coming up with knee-jerk reactions.
Some fresh thinking needs to be done. We need to fix the supply side of the economics and bring in some sanity in thinking about the economy.
Indian economy will not experience the shocks to the extent that other economies are vulnerable as we are an inward looking economy and India is where the growth is for the moment.
The Nifty should bounce back from the 3350 levels and if something unfortunate happens then it will bounce back from 2800 levels (i.e. 9500 levels on the sensex).
The markets this time will bounce back because of retail buying emerging at these levels. The best bets will be again Infrastructure (we still need to build a whole lot of infrastructure), Cement, metals and energy.