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HOW THE STOCK MARKET IS

IMPACTING THE ECONOMY


CURRENTLY?
KNOWING THE BASICS

1875 - BSE No change


oldest stock exchange during the pandemic

1992 - SEBI and NSE 2x Demat account


from 2018-19 to 2021-22
Stock Market Economy
INVESTOR
SENTIMENT/WEALTH EFFECT
BULLISH PHASE (Stock Prices Rising)
-High confidence in the economy
-Consumer Spending Rises
-More investors enter, pushing prices even higher

BEARISH PHASE (Stock Prices Falling)


-Spending reduces
-Investors move to low-risk assets (bonds, gold)
The merger of HDFC Ltd with HDFC Bank Rise in stock price and profit growth

More people will invest


RUSSIA-UKRAINE
WAR IMPACT

The market cap of BSE-listed companies


dropped significantly by Rs 6.28 lakh crore as
investor wealth declined from Rs 246.85 lakh
crore to Rs 240.57 lakh crore.
The rupee lost 1.33% of its value in 2022,
making it worst currency in emerging markets.
The European bank stocks index fell around
16%, the worst ever since the onset of
pandemic
The Germany 10 yr govt bond fell at 0.3%,making it
weak ever since from the euro debt crisis in 2011
FPI SELL-OFF
ON D-STREET
Rs 41,000 crore gone in March
DII vs FII
“SITHARAMAN APPLAUDS RETAIL INVESTORS WHO
HELPED D-STREET ABSORB FII OUTFLOW SHOCK”
MARKETS AFFECT
GOVERNMENT
DECISIONS

-Initially, IPO was to come in March 2022


-Volatility in markets delayed it due to fear of
underperformance.
PENSION FUNDS
Tavishi Pahuja
Neha Kedia
Ankapali Mukherjee

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