Will the Indian markets reel under global markets meltdown? Will Finance Minister Mr. Chidambaram be able to present Budget which can put the Indian markets back on the fast lane? Will he be able to cool off inflationary fire? Can india maintain its robust growth story? There are so many haunting questions in the minds of public just before an hour or so when Finance Minister, Mr Chidambaram will rise to present the Budget 2007-08.

Its seems a bad day when Chinese index tanks, US markets plunges, most Asian markets are bleedingand Sensex nosedived 170 points on Tuesday.

US stocks dropped the most since November as a plunge in Chinese shares sparked a global sell off and raised concern that investors will dump equities after a four-year bull market. The Standard & Poor’s 500 Index fell for a fifth day, its longest losing streak since March 2004, as commodity producers, consumer and technology companies led losses in companies that rely on demand from China.

Emerging market shares plunged the most since June following a rout in Chinese equities on Tuesday - it was their biggest all in a decade - on concern the government may crack down on illegal investments that helped drive benchmarks to records.

The Sensex, already in a weak spot as traders awaited signals from the Union Budget to be announced on Wednesday, dived 170.69 points (1.25%) to end at 13,478.83 points.

Other Asian markets that fell include Indonesia (1.12%), Malaysia (2.81%), Pakistan (0.14%), Philippines (1.44%), South Korea (1.05%), Thailand (0.69%) and Sri Lanka (0.53%). China factor could have played spoilsport, but is also concerned about the underlying negativity that has been ruling the markets over the past two weeks.

The government’s economic survey, unveiled on Tuesday, has mentioned, “There is no scope for uneasiness or nervousness about high growth. International experience shows that troublesome inflation need not be the price to be paid for favourable high growth”.

India’s economy is expected to grow at 9.2% for the financial year ending March 2007, the highest in the past 18 years. However, inflation is also ruling at a high of 6.63%. On the positive side, the survey said that fiscal deficit would be reined in at 3.6% of gross domestic product this fiscal year, lower than the 3.8% targeted and down from 4.1% last year.