What led to the free fall on Dalal street during the past week?

Source: ET Instapoll 24 Feb 2007

This is an interesting question by ET (24 February 2007).Being not a person with commerce background I can cite only a few reasons. Other reasons are surely welcomed:
1. The market might have been played emotionally. As we know budget is round the corner (28th Feb.) so the investors might be willing to play safe by clearing their portfolios and waiting for the FM to announce the various subsidies or stringent rules for the various sectors of the economy. Well I can say this personally because the shares in which I had invested have really taken a beating even though I considered them the safest bets!!!
2. May be due to high rising inflation. The simple meaning of inflation is ‘mehengai’ or money draining out from the wallet faster. So if the rates of the commodities in the nearby retail stores are high, the investor would have to keep some more part of his earnings in expenditure rather than keeping the money idle or investing in stocks!!!
3. There had been bullish trends before the last week. So maybe, just to be on the safer side, the investor might be booking profits by selling the share in case something unexpected happens in the market.
4. In order to check inflation, Govt. has tried to curb the increasing prices due to shortage in supply by levying excise duty on the manufactured goods. Since the supply is less the manufacturers have hiked the prices in order to take advantage of the mismatch in demand and supply. So the excise duty has been imposed as a check. As a result the shears of the affected sectors such as cement have taken a beating as can been seen by a 3.5% decrease in the stock prices last Friday. For further reference on this point visit: http://economictimes.indiatimes.com/News/News_By_Industry/Indl_Goods__Svs/Cement/Cement_duty_hike_to_check_prices_on_cards/articleshow/1670526.cms

Well this is all what I have to say in this. Pls give me some more points in this regards. This topic really interests me!!