The Indian Stock Market saw a flash crash on the morning of 20th June at 10 am.The market which started weak at 9 am fell by almost 3% in 10 minutes.The main index Nifty which was trading at around 5350 crashed to around 5200 in around 10 minutes.The market recovery by 1% but is again starting to go down to the low levels fo  5200 .Note the Indian stock market has been hammered due to worries on inflation,massive endemic corruption which is facing protests from the civil society.The FIIs which are the main buyers of Indian equities in the last year or so seem to have abandoned the Indian stocks as QE2 starts ending and global risks like Greece,US slowdown,inflation and interest rates worries in emerging markets  come to the fore.Note Indian stock markets are not the easiest to invest in with scams and scandals happening regularly and it at best remains a market in which you have to choose between the bad and the ugly.

The flash crash took place on news that Mauritius might lose its tax haven status as the treaty between India and Mauritius might be revised.Note Mauritius is one of the largest investors of money in India as the investments there are not taxed according to a treaty.This has made Mauritius the favorite destination of Fund Managers looking to invest money in India.It has been rumored to be the biggest funnels of black money in India which is under considerable scrutiny in India now with Baba Ramdev and Anna Hazare (Jan LokPal Bill) leading very popular public agitations.

The Anil Ambani Group stocks have led the fall,note this conglomerate has been at the centre of troubles with its top executives being jailed for the last 2 months as accused in the 2G Telecom Scam.There are reports that Anil Ambani himself might face charges of corruption by the CBI as the Supreme Court of India is directly supervising the case.Note other top realty firms like DB Realty,Unitech too have seen their CEOs cooling their heels in the Tihar Jail for defrauding the Indian government of billions of dollars in the Telecom Scam.

Nifty below 5300; all sectoral indices in red

Indian equity benchmarks were taking huge beating post reports that Mauritius government agreed to revise tax treaty with India. Stocks with investments from Mauritius were witnessing selling pressure.

More than 40% of foreign direct investment In India comes from Mauritius. Lanco Infratech, KS Oils, Jain Irrigation, Delta Corp and Alok Industries were down more than 10-20%.