How Global Market impact Indian Companies and the stocks

According to some senior share market experts and analysts, Indian economy is increasingly exposed to global markets post liberalization, which influences the entire stock market and other trends. Even minor economic fluctuations or volatility or sudden price rise in the global economy may disturb Indian market and specifically stock market. And the reason is simple, all the countries all the globe are connected due to some or other reason, which makes the condition even more critical.

Interconnected supply chain, distribution and commerce…

Today, most of the businesses have interconnected supply chain, distribution and commerce transactions, which also play a greater role in overall market impact. Most foreign investors invest in Indian stocks because they are highly beneficial and that is a reason behind market fluctuation.

Indian markets are deeply integrated with foreign markets that is why it one can see immediate fluctuations in the local market. Even minor global moves in terms of depression or upward movement of currency can create a ripple effect in regional market. “It is believed that increasing participation of institutional investment increases the volatility of the domestic market in emerging economies.” – Tandfonline

Track global events to take actions

This is the only reason market analysts always suggest to track global events to take actions accordingly. They invest their time and efforts in interpreting global scenarios. They closely monitor employment ratios, GDPs, consumption ratios, perform market analysis, important and expert policies, business and trade relations, total earnings, debt, exchange rates, policies of banks, insurance companies and mutual funds; expenditure, and other financial aspects of top economies.

Market analysts of investment advisory companies also pay close attention to local and international commodity prices, private capital inflows, savings, total investment & economic progress, government moves, development in the technology along with the investment initiatives. Besides all these, they also evaluate and study dynamics and variables of the market (both regional and global). Hence, we can say that the global market impact Indian companies and the stocks in a big way…