10 Key Factors Affecting The Indian Stock Market

10-key-factors-affecting-the-indian-stock-market Published 1 month ago Views (13) Sci-Tech

The Indian stock market is affected by numerous factors and knowing these factors will help you decide when to enter or exit while buying and selling shares. As a smart investor, you should keep track of the following factors that can have a profound effect on your investment plans and strategies. 

1. Monetary Policies by RBI

RBI periodically announces monetary policies and changes in the interest rates. When the RBI reduces interest rates, the stock market performs well. On the other hand, if the rate is increased, the stock market’s performance is not too good. Share prices rally when there is a reduction in the interest rates but prices fall when there is a hike. Likewise, if the monetary policies of the RBI cause increase in liquidity, the stocks will perform well. The reverse happens when the liquidity is low. 

2. Commodity Prices

You may be using your demat account online to trade commodities and that means you know that India imports several commodities like crude oil, copper, and natural gas. An increase in commodity prices causes a rise in the input costs for companies. Some commodity prices can increase inflation, causing interest rate increases. That, in turn,...

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Michael Siemsen grew up in Venice, California, the second son of a Vietnam veteran turned policeman. Initially focusing on performing arts, Michael attended the prestigious Alexander Hamilton Academy in Los Angeles

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