Limitations of economic recession in indian stock market

The country is still holding its ground in the midst of the current global financial crisis. While the sector-wise growth of GDP in agriculture, forestry and fishing was at 1.

Limitations of economic recession in indian stock market

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Global Recession and Impact on Various Sectors of Indian Economy

Blogs What is Economic Recession? Its Impact on Indian Economy? Details Written by Super User Published: People lose their job, there is a decline in business activities, stock markets fall, housing market lose its charm and people become more cautious about their spending.

The subprime mortgage crisis which led to market crash around the world stands as a reminder that downturn in economy is one of the toughest times to deal with.

Limitations of economic recession in indian stock market

In this article we will see what is economic recession and its effect on Indian economy. What is economic recession? Economic recession is a phase where there is severe contraction in economic activities. Most economists agree that if economy shrinks for two consecutive quarters, then economy is considered to be under recession.

From above definition it is explicitly understood that when economic recession takes over the economy, entire economy is under severe stress. All desirable economic conditions like high employment, high growth, stability in currency rate etc increasingly become challenging under economic recession.

Some of the causes of economic recession There are many economic factors that can cause recession. Some of them are listed below 1. Built-up of over capacity 2.

Balance of payment crisis owing to depleting forex reserve 3. High Interest rates 4. Prolong inflation or deflation in the economy 6. ByIndia was well entrenched into globalized economy, though many of its critical sectors were not exposed to global risks, owing to which Indian economy was largely saved from traumatic effect of economic recession.

Nonetheless, irrespective of all the positive factors like robust domestic demand and minimal exposure to global risks, Indian economy in the long run would have to face rippling effects of economic recession. Mentioned below are some of the points that highlight major effects of economic recession on Indian economy 1 Economic growth faltered: Owing to lowering of demand and several other adverse economic factors that were brought upon by economic recession.

The Indian corporate sector started feeling pinch of high interest rates in the market. Especially real estate, consumer durables and auto sector, which are overtly dependent on low interest rates to spur demand, had to face stressful time.

Limitations of economic recession in indian stock market

With balance sheet of most big corporate companies under severe stress, the job market took the toll. BeforeIndian stock market witnessed impressive bull run that saw huge inflow of capital from foreign institutional investors.

Many big Indian corporate also raised huge amount capital through initial public offering IPO. But this was not sustained as effects of economic recession started becoming visible throughout the economy. The current scenario of economic recession in Indian economy After sustaining onslaught of economic recession for considerable period, today Indian economy seems to be standing on a very strong footing.

There is an upbeat feeling among most economists that Indian economy has successfully withered the storm and will soon rebound to high growth trajectory. However, some economists caution that since most developed countries are still reeling under economic recession, the road to economic recovery is not as easy as it seems.

The recent economic downturn in Chinese economy is an indication that volatility in global economy is far from over and India cannot stay immune to it.The National Bureau of Economic Research cites "a significant decline in economic activity spread across the economy, lasting more than a few months" as the hallmark of a recession.

Nov 16,  · NEW DELHI — India finally woke up to the global economic crisis Friday, as its stock market fell 2 percent to its lowest level in 14 months and concern mounted that its already slowing economy. recession and declining stock market prices around the globe. Recent Global Recession and Indian Economy: An Analysis International Journal of Trade, Economics and Finance, Vol.

2, No. 3, June Source: Monthly Economic Report, Ministry of Finance, Government of. Limitations Of Economic Recession In Indian Stock Market Jones, the Dow 30, or simply the Dow, is a stock market index, and one of several indices created by Wall Street Journal editor and Dow Jones & Company co-founder Charles Dow.

Global Recession and Impact on Various Sectors of Indian Economy: By the food processing industry in India was seeing growth even as the world was facing economic recession. According to the minister, the industry is presently growing at 14 per cent against six to seven per cent growth in –The Indian food market is estimated at.

As the printing and the supply of currency happening and the more and more currency going unaccountable, there lies the economic slowdown, economic recession, rise in inflation, and many other economical imbalances.

Recession - Wikipedia