IIP figure forecasts major shock waves in the economy. Our former finance minister would say it is only some numbers (As he said about Sensex). The fall in intermediate goods production means fundamentals was wavering. The November figures would be better only for Non-durable consumer goods but might not take it to September levels.
IT results of 3rd quarter will be a desaster and many SME's in IT and ITES will be wiped out. Major layoffs are already on the cards. Expect major FII outflow in the 3rd week of January. First Crash (Sensex around 7500 -7800).
February 2nd week (after poor Dec IIP data) second mini crash (Sensex around 6700-7200).
April - May 2009, official acknowledgement of poor Growth (0.6 to 3.2 Max).
I don't want to predict where sensex would be.
I sincerely hope I am wrong this time.