Analyzing The Stock Market Of Indi An Overview Of The Financial Crisis

Financial crisis is really a major concern for all economies in the world. Every time a crisis occurs, companies, banks and financial institutions should draw their own lessons, because if the lessons are not recognized, they may still go on the trail of failure of

The second and chief objective is to assess the impact of the crisis on the foreign exchange and stock markets. The report answers why the crisis adversely affected the Latin American market indices while the US market indices continued to rise.

The budgetary emergency happened in light of the fact that banks could make excessively cash, too rapidly, and utilized it to push up house costs and conjecture on money related markets. With a large portion of 10 years' insight into the past, it is clear the emergency had numerous causes. The most clear is simply the agents—particularly the unreasonably overflowing Anglo-Saxon sort, who asserted to have figured out how to oust hazard when in truth they had basically forgotten about it (“Crash Course”, 2013). National brokers and different controllers likewise bear fault, for it was they who endured this imprudence. The macroeconomic scenery was imperative, as well. The "Incomparable Moderation"— years of low swelling and stable development—cultivated lack of concern and hazard taking. An "investment funds excess" in Asia pushed down worldwide financing costs (“Crash Course”, 2013). Some examination likewise entraps European banks, which obtained avariciously in American currency advertises before the emergency and utilized the assets to purchase dodgy securities. Every one of these variables met up to cultivate a surge of obligation in what appeared to have turned into a less unsafe world.

The stock market is like a playground for business. Business’s either collapse or succeed when stock prices go up or down depending on the market at the time; it’s like gambling. The stock market is a medium for business’s and investors who want to be part

In 2008, the world experienced a tremendous financial crisis which is rooted from the U.S housing market. Moreover, it is considered by many economists as one of the worst recessions since the Great Depression in 1930s. After bringing a huge effect on the U.S economy, the financial crisis expanded to Europe and the rest of the world. It ruined economies, crumble financial corporations and impoverished individual lives. For example, the financial crisis has resulted in the collapse of massive financial institutions such as Fannie Mae, Freddie Mac, Lehman Brothers and AIG. These collapses not only influenced own countries but also international scale. Hence, the intervention of governments by changing and expanding the monetary

Some studies do examine the portfolio management along with the market volatility, impact however; the scope is often limited to a Bangalore. This study takes a look at the awareness of Mutual fund industries its growth in India. If one considers the transactions by domestic mutual funds (MFs) in the equity market an indicator of domestic investor participation in the stock market, domestic investors have been active participants in recent times. But the common perception that domestic investors lack market-moving influence is not entirely based on fact.

AbstractIn 2008 the world was fell into the worst financial crisis since the Great Depression of 1929-1933. Although this crisis has gone, however, its consequences for the economy of many countries is very serious, even now many nations are still struggling to escape difficulty. Just in a short period, the crisis originating from America has spread to all continents. It led to a series of serious consequences such as the falling in stock markets, increasing in unemployment rates, large financial institutions had been

In an increasingly interdependent financial world the recent Global Economic Crisis has had a cascading effect on the economies across nations. The crisis also impacted the Indian economy, though on the subdued scale and magnitude vis-à-vis the USA and other developed countries.

Over the past two decades, the global market is quite dynamic experiencing 1997 Asian financial crisis, 2008 global financial crisis, and 2010s European debt crisis. Especially the financial crisis during 2007 to 2008, the U.S. stock market peaked in October 2007 and then entered a pronounced decline, which accelerated markedly in October 2008. By March 2009, the Dow Jones average had reached a trough of around 6,600 (Bloomberg, 2015). It is expected that because financial crisis made the stock environment fluctuated, stock returns might have

This chapter is about the background of 2007-2008 financial crisis. The 2007-2008 financial crisis has a huge impact on US banking system and how the banks operate and how they are regulated after the financial turmoil. This financial crisis started with difficulty of rolling over asset backed commercial papers in the summer of 2007 due to uncertainty on the liquidity of mortgage backed securities and questions about the soundness of banks and non-bank financial institutes when interest rate continued to go up at a faster pace since 2004. In March 2008 the second wave of liquidity loss occurred after US government decided to bailout Bear Stearns and some commercial banks, then other financial institutions took it as a warning of financial difficulty of their peers. In the meantime banks started hoarding cash and reserve instead of lending out to fellow banks and corporations. The third wave of credit crunch which eventually brought down US financial system and spread over the globe was Lehman Brother’s bankruptcy in August 2008. Many major commercial banks in US held structured products and commercial papers of Lehman Brother, as a result, they suffered a great loss as Lehman Brother went into insolvency. This panic of bank insolvency caused loss of liquidity in both commercial paper market and inter-bank market. Still banks were reluctant to turn to US government or Federal Reserve as this kind of action might indicate delicacy of

Financial institution like banks and other investment company operates to earn profit. However, during the period of business cycle they may come across the situation when their assets gradually or suddenly start to lose its acquired value and they begin to drop profit of the business for a years or many years. Such situation is commonly called financial crisis. Banking crises is associated with financial disorder in stock market, treasury market and bankruptcy of financial institution (Wicker, 2000). The country may have to face recession or depression, if such crises are not controlled. During nineteen and twentieth centuries many financial institutions faced banking panics which was uncontrollable and resulted to recessions. This essay

There is an extensive literature written on the Global Financial Crisis of 2007 to 2009. The paper that is currently being researched on focuses directly on evidence from India with the emphasis on the

Even though there was little effect on the Indian financial and banking sector because of their limited exposure to troubled assets, prudent policies of RBI and low presence of foreign banks in the Indian market, there was a change in the market condition following the collapse of Lehman Brothers. With regards to the crisis, India saw a reversal of capital inflows due to heavy sell off by Foreign Institutional Investors which in turn made a downward impact on the domestic stock market. This reason coupled with limited access to other external funds exerted tremendous pressure on the FX market since the dollar liquidity was hampered. The chain reaction followed after this and the

Investment is defined as “an essential element for growth of the country and translate economy into a robust economy” (Hemadivya and Rama Devi). Investment is what makes changes in an economy. Equity is the residual interest of a company. Investors are investing their money into a company hoping that in return they will get more than what they invested. While there is time when there is a gain in an investment; there is also time when an investment ends in a loss. There are many factors that can influence the change of price of equity share, but according to Hemadivya and Rama Devi, supply and demand is the basic factors for price of equity share. When there is an increase in purchasing of stocks, then there is a demand of the stocks

The world today is more connected that it has ever been. We are buying and selling things from and to almost every other country in the world. The economies have financial relationship with large number of countries and to some or greater extent they affect our economy and we affect theirs. Some of the global market indices that have a key influence on Indian market are NYSE, NASDAQ, NIKKEI, Dow-Jones, FTSE, S&P500, Kospai etc. So the aim of this project is to understand how Indian stock market is affected by other foreign market. This study will help us in understanding the level of interdependency among the major stock markets in the world and its impact on india’s market. As the aim of investor is to reduce the risk so investor will