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| BSE Sensex building Source: financialexpress.com |
The
movement in BSE Sensex (Mumbai, India) largely depends on major
macroeconomic parameters like GDP growth, inflation, fiscal deficit,
foreign exchange stability, industrial output etc. affecting the
expectations of future performances of the companies. Let’s say RBI
(Royal Bank of India) increases interest rates because of rising
inflation. This increases the borrowing cost of companies which is
expected to add to their cost of production and bring down their
profits. This will bring down share prices of most of the companies in
the market.
Related: Sensex rallies 145 points, best weekly jump since May
- Mumbai business district Source: mumbaithemegacity.weebly.com
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The
Sensex is also affected by the macroeconomic indicators of the global
economy. The debt crisis in the Eurozone, for example affected the
Sensex after the integration of the domestic financial market to the
global market. Recently, the sensitive index decreased 604 points to
26398 on June 24th because of the Brexit effect. Stock prices
and the BSE Sensex index can be regarded as a good mirror of the Indian
economy. However, it must not be forgotten that Stock Markets in
general are subject to a deal of emotions, opportunism and hustlers
looking for an overnight profit. For serious, long-term investments it
is important to look at the results and opportunities over a long period
of time.
Daily
BSE Sensex movements but also long-term results, average return on
investments can be followed live on Glarius Investments Intelligence
Platform. Glarius has developed models, graphs and tools to monitor
performances of stock market indices worldwide. Also, we have developed
an econometric model to predict future movements in indices such as BSE
Sensex. www.glarius.com
Related: Modi's magic: Is India's economic miracle a mirage?
Mr. Panchanan Das
Associate Professor at the Department of Economics, University of Calcutta
Kolkata, West Bengal, India
Associate Professor at the Department of Economics, University of Calcutta
Kolkata, West Bengal, India
