There is a decline in the stock markets. That time, When the share of domestic sector among the total investment in listed equity market is 21.5 percent has been reached. This is the highest share of the domestic sector among major markets after America.
Last week there was a huge fall in the Indian stock markets. The reason given is the worsening war situation in West Asia and the stimulus package given in China. According to estimates, seeing the possibility of higher profits in China, foreign investors are withdrawing money from Indian markets to invest there. Since both the above mentioned reasons are likely to persist, the stock trading is not expected to pick up again any time soon. There was a time when a very small population of India was affected by the ups and downs of the stock market. But recently – especially after the Corona period – the extent to which the economy has been financialized has changed the situation. According to the latest report of Motilal Oswal Financial Services, the share of the domestic sector among the total investments in the listed equity market has reached 21.5 percent.
This is the highest share of the domestic sector among major markets after America. Oswal report said that if the direct and indirect (direct investment and mutual funds) investment of the domestic sector is added, then in the first quarter of this financial year this amount is equal to Rs 134 lakh crore i.e. 44 percent of India’s GDP. . The trend of Indian families investing more and more in the stock market has increased rapidly since the Corona period. In this way, India has become one of the most financialized economies of the world.
In such a situation, common families who have the capacity to invest are now directly affected by the fluctuations of the stock market. The amount of their wealth increases and decreases in proportion to these fluctuations. This means that the current market trend has a very wide impact. Greater financialization of the Indian economy has been the declared policy of the present government. Despite this, the relationship between stock markets and the real economy of productive investment and distribution has now weakened all over the world. Financialization in this form has its own dangers. However, the issue at hand right now is the financial condition of Indian families being affected by the falling market.