The stock market impacts the economy in several ways. When stock prices are rising (a bullish phase), investor confidence and consumer spending increase which boosts the economy. But when prices are falling (a bearish phase), spending declines as investors move their money to safer assets. The merger of HDFC Ltd and HDFC Bank led to a rise in their stock prices and profit growth. The Russia-Ukraine war caused a significant drop in the market capitalization of Indian companies and made the rupee one of the worst performing emerging market currencies in 2022. It also led to a steep fall in European bank stocks and German bond yields. Foreign investors sold off large amounts of Indian stocks in March, though domestic institutional investors helped absorb
The stock market impacts the economy in several ways. When stock prices are rising (a bullish phase), investor confidence and consumer spending increase which boosts the economy. But when prices are falling (a bearish phase), spending declines as investors move their money to safer assets. The merger of HDFC Ltd and HDFC Bank led to a rise in their stock prices and profit growth. The Russia-Ukraine war caused a significant drop in the market capitalization of Indian companies and made the rupee one of the worst performing emerging market currencies in 2022. It also led to a steep fall in European bank stocks and German bond yields. Foreign investors sold off large amounts of Indian stocks in March, though domestic institutional investors helped absorb
The stock market impacts the economy in several ways. When stock prices are rising (a bullish phase), investor confidence and consumer spending increase which boosts the economy. But when prices are falling (a bearish phase), spending declines as investors move their money to safer assets. The merger of HDFC Ltd and HDFC Bank led to a rise in their stock prices and profit growth. The Russia-Ukraine war caused a significant drop in the market capitalization of Indian companies and made the rupee one of the worst performing emerging market currencies in 2022. It also led to a steep fall in European bank stocks and German bond yields. Foreign investors sold off large amounts of Indian stocks in March, though domestic institutional investors helped absorb
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