How does the US sub-prime crisis influences the Indian Stock market?
(Explain in simple and understandable way for a novice stock market investor in India. And when does this crisis will be over/finish.)
Answer:
In theory, it shouldn’t really affect the Indian market much at all. Unless a lot of Indian companies have invested in some of the US SIVs that have a lot of that sub prime debt in them, financially they should be just fine.
However, stock market sell offs in the US usually spread around the world. And if the US goes down 5%, you can bet that emerging market economies like India will be down 15% in the same period.
If I knew when the crisis would be over, I’d be a very rich man soon!
Posted: July 29th, 2010 under US Stock Market.
Tags: Indian stock market, US sub-prime crisis influences