Skip to main content

How Repo Rate Influences Share Market

It is well known the relation between Repo Rate and the fluctuations in share market. Repo rate is the rate at which central bank of a country lends money to the commercial banks. If the Repo Rate is high, naturally the interest rate of commercial banks increase. Where the Repo Rate is less, the rate of interest on loans taken by clients from commercial banks will be lower. That gives a chance to invest money in Share Market by speculators by borrowing funds from commercial banks.

Lower interest rate helps people to take gain from the price changes in share market. If the interest rate is high, it discourage people from investing money in share market by borrowing from commercial banks. So the demand for securities decreases and thus the investment in industry reduces. So for the sake of share market, it is better having lower Repo Rate.

So in a nutshell we can say Repo rate is inversely proportional to share market mood and has reverse effect in economy.

Home

Comments

Popular posts from this blog

List Of Common Flowers in Kerala With Pictures

Kerala is one of the famous tourist spot situated on the south of India famous for its numerous wild life and thick vegetation. Like the Himalayan ranges on the north of India,

5 Common Examples Of Website Design Mistakes by Business Owners

This is a guest post by Sachin about five Common Examples Of Website Design Mistakes by Business Owners . When most business owners think about website design, they think about a brochure online. Online shopping sites are making a lot of money with the use of web-based applications to sell products, collect payments an arrange delivery. The only work left to do is pack and send the boxes. Smart applications can even print out the labels, so the only thing left to do it stick them on the box. Unfortunately, in many cases, websites are replacing people. For those of us left with a job, we can be thankful that many business owners make the following mistakes when it comes to websites and web design.


Don’t have one. This is the first and biggest problem of most business owners when it comes to website design. They think they don’t need one. Who can ever really do with less business? The reason why they have not been getting business from online sources in the past is because they have not …