Reason for frequent ups and downs in Indian stock market

This article is all about the reason for the frequent ups and downs of Indian market. This article also includes why we are expecting the investment from the foreign countries. This article ends with the expert answers how to overcome such frequent inflations.

How market ups and downs affects the daily life?

Many of us do not bother about the market ups and downs, but we bother about the price hike of each and every consumable products used in our day to day life. However many of us not aware of the link between the rise in one price directly or indirectly affects the price of the other. As everyone knows, recently there was a hike in the petroleum products, which reflects in all the consumable goods. Some of the social workers tried to make the government to reduce the price hike by opposing it, but nothing had happen. Why this ups and downs in market hits the people in India a lot? The answer is here the awareness to reduce the effect is less.

Why the people are not ready to invest in the Share Market?

If we go and ask some common man in our country to invest in the share market, they will suddenly say that it is a risky investment. They will always trust the investment in the form of Fixed Deposit and some post office deposits. They all are targeting the safety investment. That is good, but though we can invest some of our money in the Shares too. In India many of the people are not willing to take risk. They are less known about the market and its movement. So they are not even willing to invest a little amount in it.

Why we are expecting the foreign investment in our market?

The reason had been cleared by the above paragraph. Yes, since there are less investor in our country to invest in share markets we need the foreign investors. Our money value is less comparing to the foreign currencies like USD, EURO etc. So if they buy less units also our market will rise and show aggressive growth. So this is the main reason why our companies are dependent on the foreign investors.

What is the problem if we have more foreign investors?

The above mentioned is the main reason why we are experiencing frequent ups and downs in markets in our country, because our market growth is not in our people investment, it is all through the foreigners. So if they invest in our market the market will be at peak, whenever they feel to withdraw the money from our market then our market will be down that week. This results in the unexpected loss to the investors via company. This creates the fear among the common people about the share market.

How can we overcome this unexpected ups and downs in market?

The experts are very clear that unless most of our people are ready to invest in the market no one can predict our market growth. We have another option to shine in the market if we have more foreign investors. That option is very tough, but somewhat possible, it is to predict the foreigner's interest on our market from time to time. Is this good to depend on others while we have the source in our own country?

So people, come let us join our hands in the view of investing in our own country and bring our nation a well developed one. By doing the investment in share market in long term, we can easily come out of the ups and downs in market and the effect also will be less. So know the present status of our country and start investing at least 10 percent of your earnings which is planned for savings in shares and get benefits too. If you know the market status from time to time then it will be easier for you to earn more through market.

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Author: Pravat Kumar Das03 Sep 2014 Member Level: Gold   Points : 5

Indian share market mainly moves with the expectation than reality.
It is because maximum number of Indian traders are having very less knowledge.
50% of traders have been forcefully opened account by the sales person of the broker, and they do not know about the function and movement of a share price, and they just blindly buy and sell as per some other's advise.

This is the only reason foreign players who are having big investment can play with our sentiment and brings a huge volatile in share market.

So start learning before you make investment in share market and create awareness among other people to stay invested for longer period instead of getting panic in volatile.

choose your specific stocks to stay invested ( always choose A category stocks for long term purpose).

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