What is the relation between bank interest rates and sharemarket. How and why bank interest rates affect?
try this, The debt market affects your investments and returns more than you think and influences all your personal investments, whether in fixed income avenues such as PPF or debt funds — or in equity. Here is how. That changes in interest rates affect returns from fixed-income investment avenues is obvious Equally, changes in interest rates have profound impact on the direction of the stock market. In fact, interest rates are a key driver of the stock market. Unfortunately, many individual investors miss the many signals that the debt market offers the more astute investor. These signals can present opportunities — or serve as warnings — in a wide variety of personal financial matters, ranging from home loans, credit cards, personal and car loans to investing in the stock market, and, of course, fixed income investments. The Indian debt market comprises broadly of government securities (G-Secs) and bonds – PSU Bonds, bonds issued by financial institutions such as ICICI and IDBI, and