Effect Of The Financial Crisis On The Indian Stock Market

The exchange rates risk that is associated with economic, transaction, and translation exposure in Indian market. From the analysis, anticipate the fluctuations that seem to occur in the next 24 months

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.

Kumar (1996) compares trends/fluctuations in key macro-economic variables in India pre and post 1991, both before and after initiation of new Indian economic policy in '91. These reforms included, amongst other things, the opening up of the Indian economy for international trade (prior to this India was a socialist state not involved in these markets) plus investment and heavy de-regulation processes. These particular changes to this policy allow for great insight into the impact of de-regulated, international capital trade on previously effective macro-management. He observes that this new economic policy increased economic instability which facilitates speculative activity, particularly resulting from financial sector liberalisation and the opening up of the economy. He adds that the observed increased volatility in economic fluctuations is a result from state intervention under these new economic policies that have reduced policy effectiveness. To quote: "The NEP not only lay greater stress on market forces but on opening up of the economy to foreign capital. This imposes constraints on policies since government cannot control the external environment which is governed by international finance capital- a force far more powerful than the Indian state hence able to dictate to it". He argues that since the interest of

After the period of extraordinary prosperity, the United States, experienced the greatest economic depression of the last century. The crash of 1929 or Black Thursday is a stock market crisis that takes place on the New York Stock Exchange (Wall Street) between October 24 and 29, 1929. The crash of 1929 is the consequence of stock market speculation. Banks work with money (savings and current deposits) from their clients who deposit money. To attract customers the banks must offer them advantages: high interest but also opportunities for cash advances to buy, on credit, shares listed on the stock exchange. About one and a half million Americans out of 123 million inhabitants are shareholders. Businesses are

Analysis of “The Global Financial Crisis: Causes, Effects, Policies and Prospects” Dominick Salvatore, Journal of Politics & Society, Columbia University

Financial crisis of 2007-2008 is widely considered to be the worst financial crisis since the Great Depression of 1930s. The origin of this big storm dated back to the high home prices of the United States. After America’s entire investment banking system was attacked, many industries such as auto industry also went bankrupt. Unfortunately, it spread quickly to the whole world, causing huge damages to the global economy. Therefore, my study will focus on the effects of the financial crisis of 2007-2008. Not only the effects on advanced and developing countries, but also the effects that can still be felt today.

Financial crisis can be profoundly described in the example of the subprime financial crisis in the US. It includes causes and preconditions along with steps and options to rectify the situation, which makes it substantial for understanding the nature and consequences of most financial crises. This article is oriented on revealing the key reasons of economic downfall, ways to avoid or mitigate the situation, and the role of a business analyst in the situations of possible or factual crises.

Banking crisis has been much more frequent than any of the expectations by research or any of the banks. The annual probability of a crisis has been judged to be around 4-5% in both the industrial sector and emerging market countries (Walter, 2010). The banking sector has been effected by many factors which contributes to its vulnerability. Some of the factors that adds to the vulnerability of the bank are minimum availability of high-quality capital, lack of high quality liquid assets, and sources for reliable funding.

Financial crisis is initiated in a number of ways which include “mismanagement of financial liberalization or innovation, asset price booms and busts, or a general increase in uncertainty caused by failures of major financial institutions” (Mishkin & Eakins, 2012, p.164). There are structural underpinnings to several financial crises including the one in 2008/09.

The paper examines the emerging stock markets in BRICS countries based on the existing dependence structure and other global factors such as S&P index and the security prices

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.

The financial crisis, which began in late 2007 in US, went on to affect Europe and Asian counties. The economists were of the opinion that it would not affect the developing nations like China and India. Moreover as per the economists, these countries have already adopted reforms, which would make them withstand such crisis, and hence would be able to sail through it. But that was not the case. We would be comparing the economic policies of these countries’. Both the countries’ have high economic growth rate since last decade or so and are rapidly raising their footprint in global scenario.

In 1997, Asia financial crisis broke out. It brought a huge and negative influence on economy of Asia, even the world economy. Financial crisis which is the value of financial assets decline, lots of financial institution out of business or stock market crash. Currency plays an important role in the market. It is a base that keep economic stability in the country. When currency change significantly, the country’s economy in turmoil. The financial crisis started from Thailand, and then Philippines, Malaysia, Indonesia and other Southeast Asian countries, domestic currency depreciate and stock market downfall. Neal Maroney wrote that “six Asian countries (Indonesia, South Korean, Malaysia, the Philippines, Taiwan and Thailand) from October

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

The main causes of the crisis was 1) currency overvaluation,2) the current account deficit, and the confidence of investors played a significant role in the sharp exchange rate depreciation/devaluation. The economic crisis was primarily due to the large and growing fiscal imbalances over 1980-1985... During 1985-1886, India started to have balance of payments problems. Precipitated by the Gulf War, India’s oil import bill increased, exports decreased, credit dried up, and investors that had invested their money in India took their money out. Large fiscal deficits, over the time, had a huge spill over effect on the trade deficit, culminating in an external payments crisis. By the end of the 90’s, India was in deep economic trouble. The gross fiscal deficit of the