what happens in the stockmarket when RBI changes the CRR rates(REPO RATES)

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what happens in the stockmarket when RBI changes the CRR
rates(REPO RATES)

Question Posted / prasanna11149@yahoo.co.in

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what happens in the stockmarket when RBI changes the CRR rates(REPO RATES)..

Answer / purna and kuldeep

In stock market equation based on demand and supply CRR
related to liqudity of bank's curenceies flow.so if CRR
will increase liquidity crunch created in market that means
market become bearish.

In case of decrease in CRR it will affect the market
postively means the market will be bullish due to huge flow
of funds.

Is This Answer Correct ?

16 Yes

3 No

what happens in the stockmarket when RBI changes the CRR rates(REPO RATES)..

Answer / bala

The cut in CRR pumps in the liquidity to the market. Cash
Reserve Ratio is the ratio at which each bank keep their
cash reserve with RBI. When this ratio is reduced, the
excess cash is released by RBI and they are indirectly
pumped into the Stock market, which will help to reduce the
crunch situation

Is This Answer Correct ?

9 Yes

2 No

what happens in the stockmarket when RBI changes the CRR rates(REPO RATES)..

Answer / rohit.lala

crr changes the market and when rbi injects money in
market it booms market and it increases stock prices.

Is This Answer Correct ?

3 Yes

0 No

what happens in the stockmarket when RBI changes the CRR rates(REPO RATES)..

Answer / gulfashan ambarin

CRR is an instrument of monetary control and its level is determined by monetary authority, taking into consideration the overall economic situation.