A Stock Exchange forms an integral part of any nation. In many ways it is the barometer through which the economy of a country is perceived by many people even though there are other economic tools to judge the actual health of the economy. Stock exchanges are places through which the public at large take part as investors. In India, the BSE has been attracting thousands of investors each year. Worldwide, there are millions of transactions that take place every day.

The Worldwide Economic Slowdown

An economic meltdown affects each and every segment of the economic spectrum. Even the stock markets are no exception. The world markets are becoming more and more inter dependent. For instance the American economic meltdown a couple of years back had a major impact on the stock markets of many countries. The stock exchanges of many countries were affected very badly. In fact the United States is still under the impact of the crash of 2008.

The Impact of the Economic Slowdown on the Indian Sensex

In the Indian market a few major companies were affected by the slowdown and crash of companies on the US markets. However, the impact was not as much as what was witnessed on the European markets. The Sensex bounced back within a short period. Currently we see that the BSE Sensex is at its highest during the past two years, crossing the 19000 mark for the first time in two years. There are a variety of reasons for the ups and downs of the Sensex.

Factors Responsible for the Ups and Downs in India Sensex

There are many factors that affect the performance of the Sensex. These factors could be related to the prevailing market conditions in the country, investment policies of the government. The investment environment also depends upon how the BSE Sensex facilitates the conduct of the trading activity on a daily basis.