There is always dependency of Indian market on either US or European market?
In other words, if there is a fall in either of the markets then 90% chances are that Indian market will follow the same trend.
Why there is such dependency?
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Not only India but also many developing countries are dependent on the US or European market trends.
If I just write about India, our country has good business and economic dealings with many European and American countries. Slight change in price or any factor can affect Indian market. Affect can be even severe due to the value of money.
If I just write about India, our country has good business and economic dealings with many European and American countries. Slight change in price or any factor can affect Indian market. Affect can be even severe due to the value of money.
US markets namely Dow Jones and Nasdaq are the indicators of the world economy along with the European markets like CAC and DAX. Currently the situations is worsening with each passing day in Europe and US. The packages that are announced are only a temporary solution to the main problem which is getting deeper and deeper. Due to this, the American market as well as the European markets are in a deep crisis.
As these markets rule the world, it is obvious that Indian as well as all asian markets take the cue from this markets and if they fall, so do we.
As these markets rule the world, it is obvious that Indian as well as all asian markets take the cue from this markets and if they fall, so do we.
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Reasons are not too far to seek! When globalization is the buzzword! There have been times when Indian markets behaved in an insular manner but at the moment it is following global cues quite logically as the economic crisis which has engulfed first USA and then Europe is of a serious kind threatening global economic stability.
Reasons are not too far to seek! When globalization is the buzzword! There have been times when Indian markets behaved in an insular manner but at the moment it is following global cues quite logically as the economic crisis which has engulfed first USA and then Europe is of a serious kind threatening global economic stability.
Topic Author
A
Abhishek Dua
@abhishekdua
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Created
Friday, 14 October 2011 17:01
Last Updated
Tuesday, 30 November -0001 00:00
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