14
Will the Global crisis affect the Indian Stock Market After maintaining a range of 17,500-20,500 for more than a year, the Sensex finally crashed  below this crucial support last fortnight.  This crash was triggered by major global events, such as the S&P downgrading US debt from AAA to AA+, concern about the AAA rating status of French debt, sovereign debt crisis spreading to bigger Euro zone economies like Italy and Spain. Hence, several global indices, like the Dow Jones Industrial Average (US), DAX (Germany), CAC (France), an d FTSE (UK), broke their major supports.  The market tanked with huge volatility, and the Volatility Index shot up by more than 100% both globally (measured by CBOE Vix) and in India (measured by NSE Vix). Despite the global central bankers' efforts-the US Federal Reserve's pledge to keep the interest rate close to 0% for two more years, and the European Central Bank's promise to buy Italian and Spanish bonds from the market- to cool the market, volatility continued. In fact, the markets rallied relying on this news, only to crash later.  As is clear from the Dow versus the Sensex chart, the Indian markets had been underperforming the global equities, especially compared to the developed markets, for several quarters. However, the Indian markets and several Asian markets did not fall as much as the global indices in the recent crash. This has confused the domestic investors because they can't make out if the Indian market is nearing its bottom or not. This is why we decided to take expert opinion to find out whether they should jump into the market for bottom fishing or wait till things settle down. 1

Will the Global Crisis Affect the Indian Stock Market

Embed Size (px)

Citation preview

Page 1: Will the Global Crisis Affect the Indian Stock Market

8/2/2019 Will the Global Crisis Affect the Indian Stock Market

http://slidepdf.com/reader/full/will-the-global-crisis-affect-the-indian-stock-market 1/14

Page 2: Will the Global Crisis Affect the Indian Stock Market

8/2/2019 Will the Global Crisis Affect the Indian Stock Market

http://slidepdf.com/reader/full/will-the-global-crisis-affect-the-indian-stock-market 2/14

Page 3: Will the Global Crisis Affect the Indian Stock Market

8/2/2019 Will the Global Crisis Affect the Indian Stock Market

http://slidepdf.com/reader/full/will-the-global-crisis-affect-the-indian-stock-market 3/14

Page 5: Will the Global Crisis Affect the Indian Stock Market

8/2/2019 Will the Global Crisis Affect the Indian Stock Market

http://slidepdf.com/reader/full/will-the-global-crisis-affect-the-indian-stock-market 5/14

Page 6: Will the Global Crisis Affect the Indian Stock Market

8/2/2019 Will the Global Crisis Affect the Indian Stock Market

http://slidepdf.com/reader/full/will-the-global-crisis-affect-the-indian-stock-market 6/14

Page 7: Will the Global Crisis Affect the Indian Stock Market

8/2/2019 Will the Global Crisis Affect the Indian Stock Market

http://slidepdf.com/reader/full/will-the-global-crisis-affect-the-indian-stock-market 7/14

Page 8: Will the Global Crisis Affect the Indian Stock Market

8/2/2019 Will the Global Crisis Affect the Indian Stock Market

http://slidepdf.com/reader/full/will-the-global-crisis-affect-the-indian-stock-market 8/14

Page 9: Will the Global Crisis Affect the Indian Stock Market

8/2/2019 Will the Global Crisis Affect the Indian Stock Market

http://slidepdf.com/reader/full/will-the-global-crisis-affect-the-indian-stock-market 9/14

Page 10: Will the Global Crisis Affect the Indian Stock Market

8/2/2019 Will the Global Crisis Affect the Indian Stock Market

http://slidepdf.com/reader/full/will-the-global-crisis-affect-the-indian-stock-market 10/14

Page 12: Will the Global Crisis Affect the Indian Stock Market

8/2/2019 Will the Global Crisis Affect the Indian Stock Market

http://slidepdf.com/reader/full/will-the-global-crisis-affect-the-indian-stock-market 12/14

Page 13: Will the Global Crisis Affect the Indian Stock Market

8/2/2019 Will the Global Crisis Affect the Indian Stock Market

http://slidepdf.com/reader/full/will-the-global-crisis-affect-the-indian-stock-market 13/14

Page 14: Will the Global Crisis Affect the Indian Stock Market

8/2/2019 Will the Global Crisis Affect the Indian Stock Market

http://slidepdf.com/reader/full/will-the-global-crisis-affect-the-indian-stock-market 14/14