IS IT THE BEGINNING OF GLOBAL RECESSION OR IPO EFFECT??

The BSE has not stopped it southward dive neither is the nifty showing any stopping. The DOW, FTSE, Korea, Japan all headed south. Is this the beginning of global recession?? There are two view of to it:

First, some says that the world market is seeing some recession. So money from the secondary markets is moving to Fixed income and alternative avenue. So the US & European markets are headed down. And the Indian markets may have some connection but the real cause of fall in Indian market this weak is two huge IPOs. The reliance power has collected 250000 crore rupees till yesterday. The market cap of NSE is 1.46 trillion USD and BSE is US$ 1.61 trillion. Thus making collectively Rs 122,80,000 Crores. The reliance power has collected 2.17% of market cap of BSE NSE combined. If we assume this money is coming from the market then the Indian markets should fall. This theory can be validated when other big IPOs like BSNL ect comes.

The other opinion is than the money in US market is moving to Fixed income and alternative avenue. Thus even the money from India and other asian markets is being sucked up. This is leading to global market fall including India.