India Finance Brief

The economy and the stock market are closely related. The stock markets reflect the buoyancy of the economy. When there was a slowdown in the US economy, the Indian stock markets also crashed. Every economy goes through periods of fast growth, slow growth and no growth at all, sometimes even going through periods of negative growth. The extent and intensity of global economic down turn is unprecedented. Recessions are the result of reduction in the demand of products in the global market associated with falling prices known as deflation due to lack of demand of products; possibly the result of inflation or a combination of increasing prices and stagnant economic growth in the west.