Effect of high CBR, lower growth rate for the economy as a whole - from corporates to SMEs, growth is limited. The rationale being that enterprises need credit to expand and grow the business.
Also, many companies dealing in non-essential commodities will be hard hit, as consumers move away from the luxuries and concentrate on the basic needs - from a macro-economic view.
so Q4 2011 for many companies will not be rosy, thereby clouding results for FY 2011. I bet many companies will report Q4 figures less than those of Q3 in 2011 - i will be proven right in early 2012 when results are released.
In other words, fundamentals of many companies will be hit by the unfavourable macro-economic conditions at the moment;
Other factor: People will move capital from the NSE and put it in the T.Bills - therefore some capital flights from the NSE - i expect that prices will fall in the short term, at least by another 10%. compare prices from start of Nov 2011, and end of Dec 2011 - and the index will have fallen. You can be sure of that.