The movement of the S&P 500 and credit crunch is the biggest factor which affects Indian equities, said Madhav Dhar, managing partner of GTI Capital.

"The second biggest factor is recent problems in the banking system and the credit crunch. I would say a distant third factor is crude oil prices," he said.

When asked road ahead for the Indian market, he said, “I have no blueprint, but we are close to the bottom, the currency plus markets are corrected depending on what stocks or Index you are looking at somewhere between 20-30 percent.

Economy is still fine and accelerating, margins are still low, valuations are still reasonable so India is frankly in a different cycle, he said.