Markets are like women -- always commanding, mysterious, unpredictable and volatile. I think that Indian Stock Market will definitely stabilize in the near future as the fundamentals of the Indian Economy is strong and more so of corporate sector. It seems that the market will take a little more time to stabilize and settle itself in a comfort zone. The turmoil in the global markets need not affect India as “the Indian economy is driven by its own robust investment and consumption. Ours is a long-term growth story based on real investments. If we talk about the Reliance Power’s IPO which receives an overwhelming response from the investors, it clearly shows that investors seem to be confident and have good faith in the future of India. FIIs pulled out nearly $2 billion from equities in just four days after their monumental response to the Reliance Power’s IPO. It is a reflection of the world community in the future of the robust Indian Economy. This outflow of liquid money can also be considered as the reason for the huge recession in the history of the Indian Stock Market ever. Recording another year of impressive performance, the economy grew by 9.6% during 2006-07, leading to over 14% increase in the per capita income. The improved growth has been achieved due to all around improvement in the manufacturing and services sector. One way to judge the fair market value of India's equity market is that to look at the ratio of market capitalisation to the nominal GDP which also gives a broad indication.In India, the ratio reached 173%--a 73% increase in just a year’s time.So i think that Indian Stock Market would have a stable growth in the long run.