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Global Market Effects on Indian Stocks

Global markets such as the NASDAQ, Dow Jones, FTSE 100, and Nikkei influence trends in the Indian stock market. As Indian companies export products and raise funds abroad on exchanges like the NYSE and London Stock Exchange, their share prices are affected by worldwide economic conditions. The main types of markets are equity markets for trading company shares, commodity markets for goods like metals and agricultural products, and currency markets that set exchange rates for foreign currencies.

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Nikhil Kwatra
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7 views1 page

Global Market Effects on Indian Stocks

Global markets such as the NASDAQ, Dow Jones, FTSE 100, and Nikkei influence trends in the Indian stock market. As Indian companies export products and raise funds abroad on exchanges like the NYSE and London Stock Exchange, their share prices are affected by worldwide economic conditions. The main types of markets are equity markets for trading company shares, commodity markets for goods like metals and agricultural products, and currency markets that set exchange rates for foreign currencies.

Uploaded by

Nikhil Kwatra
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOC, PDF, TXT or read online on Scribd

Effect of Global Markets in the Indian Market:

Some of the main global indices that effect the Indian stock market are the
American:
NASDAQ, Dow Jones
European:
FTSE 100,CAC40
Asian:
SSE180 Index,Japan Nikkei

Generally the trend in these markets drives the trend in the Indian market .Indian companies are
exporting their products to global markets, raising funds by listing on varied foreign stock
exchanges (NYSE, London Stock exchange and NASDAQ etc). Revenue for Indian companies
from foreign markets is increasing annually. Therefore, the share price movements of these
companies are more likely to be affected by the development of the world economy.

TYPES OF MARKET:
EQUITY Market
Equity market, often called as stock market, is a place where shares of companies or entities are
traded. The market allows sellers and buyers to deal in equity or shares in the same platform.
It is a place where stocks and shares of companies are traded. The equities that are traded in an
equity market are either over the counter or at stock exchanges.

Commodity Market
A commodity market is a physical or virtual market place for buying, selling, and trading raw or
primary products. Commodities are split into two types: hard and soft commodities. Hard
commodities are typically natural resources that must be mined or extracted—such as gold,
rubber, and oil, whereas soft commodities are agricultural products or livestock—such as corn,
wheat, coffee, sugar, soybeans, and pork.

Currency Market
The currency market includes the Foreign Currency Market and the Euro-currency Market. The
Foreign Currency Market is virtual. Trading on the Foreign Exchange Market establishes rates of
exchange for currency. Exchange rates are constantly fluctuating on the forex market. As demand
rises and falls for particular currencies, their exchange rates adjust accordingly

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