Essay on The Growth And Development Of Stock Market

1007 Words Nov 2nd, 2016 5 Pages
In the global economy, the growth and development of stock market of any country depends on the financial system and economic fundamentals. The well established financial system provides the necessary financial inputs for the production and services. The strong economic policies and economic indicators are support the standard of living of people and influence the growth of an economy. Before, liberalization, privatization and globalization, most of the economy as consider as closed economy, the growth and opportunity was confined within the country. After 1991, Liberalization, Privatization and Globalization was established, the majority of the countries became open economy and highly connected with global market. The macroeconomic variables became the leading indicators are determined the stock market behavior of developing and developed countries, because the stock prices are highly sensitive by changes of macro-economic variables.
The Indian stock market plays a pivotal role in the growth of industries and commerce of a country which would affect the economy. The stock market growth depends on economic fundamentals and its related issues and problems. The stock market is perceived as a very significant part of the financial sector of any economy. Moreover it plays a vibrant role in the utilization of capital in many of the emerging economies. Generally the stock market is affected by the many factors such as highly interaction of internal and external economy,…

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