Spock (rhp)
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America is the world's biggest customer for many other countries' exports.
btw, where is "our markets"? |
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infoware12
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Hi
I believe that the market had fallen very fast because of FII selling 17%.
Roumer Citi bank made a big loss and going to close the transcation which is not true ... and last but not the least
short selling done by some brokers which makes maket force for free fall....
Jitendra Patel |
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dhana k
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The reason is
1.Most of our IT industries , Textile, Pharmacy and Leather industries are havaing tie up with US industries and Getting contract from them so a small change in their economy reflects in ours...
2. The major FII investor of our markets are CITI GROUP BAKS and DSP MERYLL LYNCH of America .. so when there is a interest rate cut in their banks their investment wil change according to that ... now our markets are run on their Liquidityonly... so it wil go with their economy.. so only their policy changes affects our market |
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neha s
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US is the biggest economy plus most of its imports are from world's manufacturing hubs like India and China.
Right now US is facing recession i.e. demands of goods are going down
which means low exports from India &China,
which means low production
which affects our market adversely
this affect is found globally
countries from where we get the raw material are also affected |
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minootoo
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USA is one of the most important consumer of the capital goods and other items, including food items.
It is also a giant producer of such Items the only exception is petroleum products, it cannot produce enough to satisfy its own demand and imports 80% of its consumption of petrolium products from all over the world. |
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c-squre
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The changes in US policies of the interest rate ,Which was cut to down rate,affect the loss to the exporter.and the company dealing the business is not interested to bear the loss of the income at the same time the ex pence of the employees.So the companies are trying to lessen the burden of their own employees.Which lead to unemployment.And market will affect ,because the prices will be going up for the product or things,whatever the things imported.So every corner will be unbalanced and so market is being affected as the Us dollar is the strongest one considering the market feature. |
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R K
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simple man..........
when ever financial policies in USA change the rate of dollar changes.. and our exports and imports are affected. there by affecting our market .and our economy... |
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BALAMURUGAN S
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Indians love over US products.... most of the Indian love foreign products.... |
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swift.surfer
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Investment is a result of excess income. Those who have excess funds invest in different oppurtunities. The answer to your question has two aspects. I shall try to explain well. Hope u understand...
1. The Us is a developed economy. That means the investment oppurtunities is lesser there as the economy has reached its maximum growth level...lesser new companies are there....and companies need lesser funds from the public. Thus the people with excess funds try to invest elsewhere. Mainly investment comes to India and China.
2. The rate of returns from investing in the Indian Stock Markets is the HIGHEST in the world. So investors even invest just to maximise returns.
Now the change in policy that is the lowering of the money banks have to maintain with the federal bank in the US. THis resulted in more money available in the economy and thus this helped the stock exchanges in India to bounce back as more money was getting pumped into the stock markets in India. |
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sab
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India is giving great importance for FII's(foreign institutional investors).so that India got a large cash inflow.so whenever there is a change in US market that will effect our market. |
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tiwari.dhirendra
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Our markets, mainly software companies which are having freelance work provided by America , which generally depends upon the dollar currency so when the dollar currency goes Up & Down , it reacts as similar to our markets, and that's why our markets affected by changes in US policies.
Even the other Indian companies whose business do the exports , they are also affected due to the US Currency's Up's & Down's. |
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motam n
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As we all know that technology is an important tool for the business growth, so i feel we have to be self sufficient, and learn and use from our own natural resources and as example petroleum is not available in U S and how they are depended on imports. Similarly we have so many natural resources which, are unable use them properly. |
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Rakesh
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Our economy is well coupled with world economies as explained by others here. US being the biggest in the lot has maximum influence.
However this coupling is limited for our economy. Indian economy is largely based on in-country consumption, so you have observed our market in-line with Asian peers are making newer highs. Sometimes, even the fall may hv back-drop of US policies but in reality, it was ripe for correction.
Another important point underpinning the de-coupling arguement is the GDP growth rate, which we are only next to china. We score higher than china in PEG ratio i.e Price-Earning ratio divided by GDP Growth rate. We are the best and that makes India the best investment destination.
Happy Investing! |
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niranjan p
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The us mkt cannot have a major direct impact on our market. Its like most of the economies are globally linked with usa. Now a sustainable direct impact of indian market and an indirect impact from the rest of the markets is making this overall unsustainable impact on our market. Its like US economy pulling the other markets for a downturn. i fear to say its like vicious circle.And this thought invokes risk sentiment among investors thus making the market volatile. |
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Rishabh G
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OUR MARKETS WERE AFFECTED BY THE US MARKET BECAUSE ALL THE FIIs (INVESTMENT BY FOREIGN INSTITUTIONS) WERE BEING SOLD OFF VIGOROUSLY DUE TO THE CRASH IN THE US. THIS RESULTED IN FALL IN THE SHARE PRICES, THEREFORE THE FALL IN THE SENSEX!!
It is simple supply demand relationship! :) |
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PEDDAPALLI N
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Since US has been playing the dominant role in the world economy and in the international trade. Many countries of the world have been doing most of their international trade with US and most of the countries have pegged their currencies to US dollar in this regard most of the nations of the world are directly or indirectly related or linked to US. Therefore, if something happens in US or changes in US policies will affect all the nations(economies) which are linked to it either directly or indirectly and markets are part of nation's economy.
In this regard I would like to quote famous saying "If America sneezes, rest of the world catches cold". |
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chirag_smilever
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USA is world's number 1 economy.
Indian, chinese and many other markets depends on USA market.
They make profit by US economy by mean of out sourcing and other ways of export-import.
If supar power vibrates than literrally its dependants have effects. |
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jayanta s
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US economy is the bigest economy of the world and our economy also connected with it both directly and indirectly.So it is quit impossible to made a sheild around our economy to protect that affecs.Thats why it is affected our market when they changes policies. |
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Pushkar
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Our market affects by our speculators and uncontrolled implementation policy of SEBI. |
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debajyoti32
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our economy depends on US market. There are lot of foreign investors in out market. |
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sukhmeetsinghsandhu
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The business depends on ONLY PROFIT. The American Dollar still is very costly. They have invested huge money in our market. Specially the citigroup and marlying group and standard char tad bank. When the foreign direct investment is more in Indian market there is rise in the sensex, if these people shy away or sell their shares of Indian companies there is recession in Indian economy. The rate of Int rest in America is very low on the money deposited in the banks, and they charge higher rates for lending as is in India. When the banks in America increase the int erest rates it directly affects the share market of India. Besides they import heavily consumer goods from India and other Asian countries. when demand there is less the recession comes to India or exporting countries.The world today is a small place any change in big economy effects the smaller economies. |
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adarsh m
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America is the nation with the highest amount of gdp.in todays world there is no country which does not have relations with the U.S.A.. If the US does not have money then , investors will find it extremely difficult to enter asian markets. they will have to withdraw their money which has already been invested from the markets . Businesses would suffer tremendously. |
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prasad d
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Because of high investment made on market of India by US companies. |
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Mathan
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America a don in the world market,one of the biggest customer to almost every country in the world i.e from exports and imports .If there is a contamination we get the flu thats fate |
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Ram
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FIIs play an important role in the stock transactions and provide the much needed liquidity into our markets. This may result in accelerated buying or panic selling when there are changes in the US and global markets. At a micro-level, slowdown in advanced economies will affect the valuation of exports-oriented companies due to a dip in their profitability and growth prospects.
However, the fundamentals of our economy and our markets are not affected by US policies. We are now seeing the bulls back in action. |
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krisanughosh
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Beacause the world economy is interconnected and integral in nature .Changes in the major policy decisions or policy shift of the principal market of the world economy is bound to effect the other countries and their markets. |
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abhijit k
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US is largest consumer of oil as they are consuming almost 50% of oil production of whole world.
Thats why indirectly they are deciding oil prices which affect all kind of businesses & industries in whole world.
India also importing many kind of capital goods from US so change in any financial policy may affect our "Balance Of Payment.
Secondly many American companies are investing huge amount of money in our stock market and industry so if there is any change in financial policy in US which is beneficial to investors then investing in India, they may divert funds from India to US.
And thirdly India & US relations are in discussion due to "Civil Nuclear Deal" which may affect our power sector as well as defence.
So all these factors are widely affecting Indian Market with changes in US policy. |
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CHANDRAKANT P
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THE US ECONOMY AS PRESENT IS IN VERY BAD SHAPE.THE US GOVT IS SPENDING BILLIONS AND BILLIONS DOLLARS IN WAR WITH AFGHAN AND IRAQ. THIS DIRECTLY AFFECTS ITS MARKETS,WAGE STRUCTURES,RECESSION IN INDUSTRIES AND REDUCING THE MAN POWER IN JOBS. THIS ULTIMATELY BRINGS DOWN THE ECONOMY WITH INFLATION, HIKE IN PRICES WITH REDUCED PURCHASE POWER. AND ALL THESE THINGS DIRECTLY OR INDIRECTLY CASTS ITS SHADOW ON SUPPLIERS,I.E.INDIA,CHINA ETC.LESSER EXPORTS MEANS SHORT FALL IN EXPORT INCOME AND ULTIMATELY IT RESULTS IN REDUCTION IN PRODUCTION AND IT RESULTS IN PROFITABILITY OF COMPANIES. |
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OP
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Our foreign exchange reserve is in US Dollars and thus inflow or outflow of dollars are bound to affect our markets. Reduction in deposit rates by US banks will increase investment in our country where higher rate of interest on dollar funds is available. Rise in interest rate by US Banks will cause outflow of dollars as return on investment goes up in US. Trade between America and India is substantial and so any change in dollar / rupee rate effect our foreign trade. Further now Indian nationals can invest in American Companies and vice versa and so sudden buying or selling effect our share markets and commodity markets. Speculators sometimes move into the market with a definite motive to move the prices in their favour to the detriment of retail and innocent investors. Sebi should come out with suitable laws to curb such practices to keep the interest of Indian investors in the share market to benefit the Indian Industry. |
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Romeo
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just invest for a longer term ( 4 to 5 years)...dont worry for all these falls... |
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Inder
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you talking about markets only?? changes in US policies even affect goverments. leader's commands, others has to follow..USA is a world leader so its policies influence each and every field of the world. |
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