Effect of Historical Events On The Stock Market

Effect of historical events on the Stock Market

Data Analysis:

Sensex-BSE

Data of the historical events that happened in the year 1996 was collected and their effects on the Sensex are analyzed.

FTSE100 Index

Data of the historical events that happened in the United Kingdom (1995-2007)was collected and their effects on the FTSE100 index were analyzed.

Observations:

Sensex-BSE

Ø There were many up and downs in the stock market in the year 1996.

Ø Due to reduction in CRR again the market become bullish in the month of April.

Ø In the month of May,Atal Bihari Vajpayee became Prime Minister,stock market became bearish while within 15 days again HD Deve Gowda became PM and stock prices started rising.

Ø In the month of October minimum lending rate was reduced from 17% to 16.5%,so falling stock prices again rose.

Ø Again in the month of November CRR reduced,stock market again became bullish for sometime.

Effect of historical events on the SENSEX for the year 1996

FTSE100 Index

Ø Due to the bomb blast in London in 1996,in the month of February stock prices fell.

Ø During the period of US-presidential elections there were many fluctuations in the market.

Ø When Tony Blair became Prime Minister of Britain, the stangnat stock market prices started rising and again stock market became bullish.

Ø In October 1997, due to economic crisis in Asia, prices fell.

Ø The financial results of various companies in the month of February 1999 showed strong earnings, due to which stock market gained investor confidence and stock prices rose.

Ø After the release of Consumer confidence data in the US in 1999,market started falling.

Ø The year 2001 was worst for Britain’s capital market due to the slowdown of US economy,terrorist attack on the world trade centre.Due to such events stock market became bearish and it fell below 5000 mark.

Ø Again in 2002 also,the situation become worst.The corporate scandals such as enron and world com,the forecast of poor corporate earnings were responsible for the downturn of the market.Again the market fell upto 3500 mark.

Ø But again from 2004,the stock market started recovering due to the stabilizing economy.

Effect of historical events on the FTSE 100 Index

(from the year 1995-2006)