SHARETIPSINFO >> Articles Directory >>Stock market Volatility, why Indian stock market be it NSE or BSE are volatile


Rate of inflation
Inflation rate also affect more about the stock market. Due to this trading in the stock market i.e. selling and buying the shares of the company takes place. Inflation greatly affects the other financial institution also, due to this all the loans issue by the bank also increase their rate of interest which greatly affects people. Due to this volatility people doesn’t count or pay much interest to the investment in the stock market, somewhat it can also be true that volatility is a sign of untrustworthy by people who doesn’t know the working and the functioning of stock market and how it works because of this instead of investing in the stock market people used to save their money with less interest in a bank and so on.

Since stock market is not only played by a single company, thousands of competitors come up with news which results in variation in stock market points. During the election the economy was very low due to internal disturbances and interferences and sensex was up again on the very minute when the parliamentary election was over. It is advisable to get good knowledge on NASDAQ, BSE, NSE…etc.

Stock market points also greatly varies from different points and become low when the country had a new development like manufacturing nuclear bomb because this has a deep impact on the country as well as with the foreign countries, by that time some countries stop trade with India as they want to punish for what they possess and even others countries stop supplying weapons to India. In this case the sensex is low because trading cannot be done and there is less cash revolve and circular or cash chain in the Indian stock market. But like the history Stock market never remains in the same points Even though the market might slashes within a short span of time comes out with the normal routine of ups and downs points since No company wants to remain the same ,every company wants to survive so in order to survive they have their own special team who will create new thinking even though they might be top in the market they still wants to control the market, they want to show themselves that they are unbeatable this in turn will leads to the changing of the sensex, and when big  companies change their project also sensex in influence , because they normally done quite lots of things like the Tata company they have change the manufacturing place for their new products where they have spent quite lots of money

So, as the stock market is formed by different company, each performance affects the stock market and makes stock market volatility.


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