Over the last few decades, the Indian Stock market has proved to be the backbone of the Indian economy. Indian economy is primarily dependent on the Indian Stock Market. A flourishing Indian economy is reflected in the Indian Stock market and vice versa. However, the common man refuses to take any interest in the operations of the Indian Stock market as he/she cannot comprehend the relationship of the stock market with his everyday life.

But, the impact of the Indian Stock market on our daily lives is undeniable. Every moment of our life is directly or indirectly influenced by it, be it shopping or having burgers from any up market food joint. We must not forget that all the supermarkets and the food joints get their required funds from the stock market. Without the funds, they will not be able to satisfy our ever growing demands. Investors and industrial giants often sell their shares in the stock market to gather funds.

However, various factors sometimes lead to the fall in the share prices in the Indian Stock Market. The fall in the price of the shares has its adverse effects. It affects consumer expenditure, private pensions, public confidence, investments, and the well being of Indian economy. The Indian Stock market went through a bad phase last year. With the slowdown of the US economy, the Stock market of India virtually came to a standstill. The BSE and NSE crashed and this resulted in low profits, job cuts, growing unemployment, and higher poverty. Dalal Street saw Sensex dropping by over 1430 points in Jan, 2008.

A flourishing Indian economy is reflected in the Indian Stock market and vice versa. However, the common Indian man refuses to take any interest in the operations of the Indian Stock market as he/she cannot comprehend the relationship of the stock market with his everyday life. But, the impact of the Indian Stock market on our daily lives is undeniable. Every moment of our life is directly or indirectly influenced by it, be it shopping or having burgers from any up market food joint. We must not forget that all the supermarkets and the food joints get their required funds from the stock market. Without the funds, they will not be able to satisfy our ever growing demands.

The foreign investors were no longer ready to invest in the market and were busy reallocating their funds. The Indian industrial giants saw a fall in their profit margins. However, after going through its toughest phase the Indian Stock market has started to recover and we can hope that it regains its stability in the new year.

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