Global Geopolitical Impact

The happening or events taking place around the world had seldom any impact on the stock markets during the 1990s or so. However, with the rapid progress in information technology, the world has got closer, leading to an increased awareness about the global events. For instance, the tension between Russia and Ukraine has left the stock markets move in accordance with the fears of the possible outcome. Those companies that have business in Russia were impacted by the news. Since the business of the companies has grown and expanded outside India, more events taking place globally are affecting the stock markets. Moreover, opening markets to foreign institutional investors (FIIs) have also changed the way market reacts to the global news. Weakness in other economies and perception of India being an attractive investment destinations could also draw attention of FIIs, eventually impacting the stock market positively. The same holds true vice-versa.

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