Nervous Market

Nervous Market – As the term suggests, a nervous market is a stock market that reacts aggressively to dynamic economic and political trends, especially if the changes are too sharp or even sudden.

The financial markets show signs of skittishness whenever a political upheaval or an economic meltdown is set to occur. Stock market volatility is likely to affect the investors and financial market. For instance, annual budget has been announced and the policies and regulations underneath are highly unfavorable to the prevailing industrial scenario which is facing stunted growth.

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This situation is most likely to get the stock market nervous and extremely fickle. Similarly, financial plans and forecasts made against agricultural production can go astray in case of drought like situation and which will lead to a massive upheaval in the stock market. Stock markets can also sink or rise unnaturally when a sharply contrasting statement is made by the head of the state which forms a stark contrast to what it should be.

Edited and Updated 08th March 2014

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