European markets are closely linked to other market of world; debt crisis is now spreading to other countries of Europe. First it was Portuguese, Italy, Greece and Spain (PIGS) then crisis started to deepen, causing pressure for entire region. How did this caused problem for India, I have complete explanation.
European crisis was gaining strength, so USD was strengthening against other currencies. Even INR (Indian Rupee) was depreciating against USD, creating pressure on economy so Nifty future was declining. US economy was growing at better pace than any of developed countries; strength behind USD was mainly due to this. Impact of European debt crisis was nifty future tanked from 6000 level to 4550 level. A decline of about 1500 points or 25% fall, we should thank this debt crisis as it has created plenty of investing opportunities for long term investor.
About Bhaveek PatelBhaveek Patel is one of the most successful traders, technical analyst, and investor, his areas of interest include stock market, forex, and gold trading. Apart from this, he is often seen in the golf course. He is having more than 10 years of experience in trading, had placed his first order on 19 June 2006 with IndiaInfoline.
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