Favourable situation Developed in Stock Markets by Institutional Investors

Topic: Positive Impact on Stock Market by Institutional Investors

Institutional Investor’s risk to invest in Indian Stock markets which is in bad state has had a positive impact Globally, resulting in pooling of Investments in Stock market all over the world. State Street Global Markets an US based research and Trading firm has pointed out that the Global Investor Confidence Index increased by 3.6 points to reach 82.6 in july compared to 79 points in june.

According to Professor Ken Froot from Harvard University, Investors are willing to extract some value at current prices even by taking huge risks. The Investor Confidence Index is measured by taking into account the buying and selling pressures of Institutional Investors.Greater the interest to invest in Equities greater is their Confidence Index.

Confidence Index of North American and European Investors witnessed fall. The North American and Asian Investors are positive over their intension to Invest in Equities in the second quarter of 2008.

Source: DeccanHerald, Business, July 28, 2008

Bullmarket Crash

Topic: Sensex’s downtrend movement

 The rising inflation rate and oil prices had its impact on the share market with Sensex crashing by nearly 500 points recently. The oil price per barrel touching an all time high of $139 in international oil market is said to be a major cause for fall in the bullion market. The major losers in trading marketwere Real Estate Sector, IT Sector, Oil and Gas Sector.

Along with it the rise in unemployment in U.S added to the woes of the stock market. Economists predicting recession in the U.S market, investor are worried about credit tightening. Most of the European and Asian markets witnessed the downtrend due to rising oil prices.