Home » 10 Incidents That Prove Global Events Impact Indian Markets to a Great Extent
Subscribe for News letter
Fetching Data...
Site Map Why Finalaya
Financial Blog

10 Incidents That Prove Global Events Impact Indian Markets to a Great Extent

05 Sep 2014 |By: Surbhi Kataria

10 Incidents That Prove Global Events Impact Indian Markets to a Great Extent

The Indian capital market is not insulated from the global markets.  On the contrary, to a large extent, events in the global markets, with emphasis on what happens on the Wall Street do impact the Indian stock market.

Although this is regarded as a thumb rule by the market operators, there have also been sporadic instances when the Indian markets brushed aside Wall Street and continued to maintain the uptick. This trend has been more pronounced during the 2nd half of 2014 when the Indian political equation changed dramatically and a stable government was elected to power. Ever since, the Indian indices have remained in the robust territory barring an occasional jerk or two.

The following are among the major events in the recent past that have significantly impacted the capital market.

1. Confrontations

For those who are actively following the stock markets, the impact of the Ukraine crisis and the Gaza scare were pronounced, but thankfully were short-lived.

2. Political upheavals

In the middle of 2013, political upheavals in the Euro zone region brought down the global stock markets and the Indian markets joined the sell off bringing the sensex down by nearly 300 points.

The Ukraine crisis in early 2013 too impacted the Indian stock market though the domestic political stability helped the indices from taking a deep plunge.

3. Oil prices

The 2008 economic meltdown stands as a good pointer to how the global oil prices impact the Indian stock market.

4. Currency volatility

The Indian rupee has been holding relatively steady at around Rs.60 to a dollar for most part of 2014. Though the Reserve Bank of India monitors the currency closely, and holds the rates through market intervention when needed, any major shift in the policies of the US Federal Bank can alter the situation.

5. FIIs (Foreign institutional investors)

Foreign institutional investors play a key role in the emerging markets.  Much of the market stability that we are seeing in the second half of 2014 is attributable to the continuing confidence reposed in the Indian markets by this segment.

Read More: FIIs stood as net buyers in equities as per September 04 data: NSDL 

6. Bullion markets

The Bullion markets have remained rather subdued all through 2013, registering a fall of nearly 23% during the year.  Any flight of capital to the ‘safe haven’ that gold is reckoned to be, will negatively impact the Indian stock markets.  However, in recent times, gold is perhaps loosing some sheen as a safe haven investment.

Read More :Gold futures edge lower as US Dollar Index rallies

7. Natural calamities

Although the world has witnessed fewer natural calamities of large magnitude in recent times, some of these events like the US hurricanes  are unpredictable and will impact the global capital markets.

8. The  QE taper

The quantitative easing program launched by the US government to address the impact of the Economic meltdown 2008 is tapering out. When the QE program winds down, the FED is more likely to push up the interest rates leading to cheap money drying up. This in turn will impact the FII exposure in the Indian markets.

9. Terror attacks

Terror attacks in any part of the globe will affect the capital markets and the impact could be felt in the Indian stock markets too.

10. Sovereign ratings

S&P or the Standard and Poor provide sovereign ratings for different global markets based on risk perception associated with investment. Any upward/downward movement in the ratings will have an impact on the Indian capital market.

Event driven volatility however tends to be short lived and the markets often swing back to its inherent dynamics. Taking a balanced view of the commentaries on the events will help you with informed decisions.

Let us know what you think of the article by commenting in the section below.

Recent Blogs


Is Indian economy resilient enough to sustain Donald Trump onslaught?


Demonetization & long-term economic outlook


What’s in store for Indian equities in FY2018?


How Reliance Jio is changing telecom landscape?


Will IPOs reward investors in 2017?


Five Hidden Benefits Of Having Health Insurance


BYE BYE 2016, WELCOME 2017


Planning to start an SME? These tips can help your SME on its growth trajectory


Planning to buy an expensive home? Here are the things you should know


Lending institutions may become wary of large loans


The dark and bright side of ULIPs


Are banks on their way to come out of NPA mess?


US Presidential elections and the Indian economy


Ache din continues to elude the aam aadmi


Is gold losing its sheen – demand slowing down in India and China?


Who needs Professional Liability Insurance & Why?


What if oil climbs back to the $80 or $100 a barrel?


Top 5 Financial Lies You Need to Stop Telling Yourself


GST – How does it affect different sectors?


How to leverage Workmen Compensation Insurance Policy for labor injuries and disputes?


Union Budget 2016 – What the street expects from the FM


Child Insurance, Protect what you have


What Advantages Are There in Investing in the Indian Commodity Market?


India Needs To Brace Itself For a Predicted Currency War


January & Sensex: What is the Saga?


The Importance of Home Insurance


Secure Your Wealth – An Investment Guide for Beginners


Making a Travel Insurance Claim: Questions to Ask Yourself


Why have bonus shares nearly died out in the Indian capital markets?


10 ways to diligently invest your money


Are you still in love with Fixed Deposits?


How systematic are your SIPs?


Would Shanghai trigger another global economic meltdown?


How the Chinese market turmoil has impacted the Indian Rupee


The Fed interest rate hike factor has dimmed again – but has it become laughable?


Trading vs. investing in Indian stock markets


Job loss insurance – Your cover for potential pink slips


How simmering global events can affect Indian capital markets in the coming days


Is Nifty eyeing 10,000 by the third quarter?


Union Budget 2015 - Sector Watch


Budget Day: Why markets need to remain open on Saturday?


Who gains the most from lower oil prices?


At $1200 an ounce, is gold a safe bet compared to Indian equities?


Wondering about the relevance of ULIPs? Probably it is time to rethink!


Is there a fed rate hike looming over the markets?


Are the markets heading for a deep correction?


49% FDI in Insurance Sector: Mixed reactions


How does the Modi government impact the real estate!


Sector Prediction for next 5 years: Real Estate


10 things about coal block allocation that you should know


In the context of stock markets, what do we mean by long-term?


Sensex at 27000; Nifty at 8000 - Does D-Street actually justify these big levels?


5 Safe Post Office Saving Schemes: Safe Zone For Investors


Afraid of credit card penalties? No more penalties now in 5 simple steps!


Getting married and worried about financial planning? Drop all worries now!


Not shopping online? Know what you are missing out!


5 schemes that are going to save your tax expenditures


Do you have idle money in your bank account? Opt for Auto FD


5 reasons that make Maruti cars the most suitable for Indian needs


The Ukraine Crisis – All that you need to know


5 major events that pulled Nifty above 8000 mark


Want to buy a refrigerator or TV? Manage your money by opening a Recurring Deposit account


10 Incidents That Prove Global Events Impact Indian Markets to a Great Extent


5 Intelligent Ways To Invest in Mutual Funds


5 reasons why you should invest in Gold


A few basic tips to invest wisely in stocks


SIP –Proxy to Equity Investing?

Page  of 
First Page Previous Page Next Page Last Page
Go to