4 Replies to “how sensex can effect the indian economy?”



  1. Share Market index is just a barometer to assess the investment mood. If it is rising and showing promise new capital can be raised for productive purpose. This has its multiplier effect and raises the economy. In the other case when the market is indecisive the ability to raise capital is affected and the economy is deprived of productive capital. For more kindly read any simple financial magazine.


  2. Basically, sensex shows how stable is the condition of various comapnies of a country as a whole. it is basically an indicator of the faith of investors. so, if it is high, it shows that economic condition is quite good and the future is prosperous. Now, by seeing this indications foreign investors get attracted towards investing in the country because they see the country as safe and profitable place to invest. so, this brings foreign investment in country which causes further develeopment of economy. but if sensex is crashing all the time then neither local nor foreign investors will like to go for new ventures. it’s a cycle in which a good economy leads to better sensex which leads to further developing the economy.





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