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why stock market goes to bearish mode when RBI hikes CRR
rates?
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Answer Posted / nerella prakash
CRR Stands For cash reserve ratio,That the amount of
reserve banks need to maintain with the reserve bank of
india.when RBI increase The CRR,Banks left with Shorter
amounts of Fund to grant loan to the public,and hence there
is less circulation of money in the market.With lesser
investments in market, Demand for stocks comes down and
there is a barish Mode in the market.
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