Reason for excessive Volatility in Stock Markets

The BSE Sensex plunged over 629 points and Nifty declined 198 points after 335 point rally in past 2 session, Increasing the volatility.

• Crucial bills such as Goods and Service Tax Amendment bill and the Land Acquisition Bill, which were supposed to be passed in the ongoing session of Parliament, got stuck in the Rajya Sabha. As both these Bills have been refereed to select Committee, in Monsoon Session only can we see passage of these bills.

The rupee, which has been most stable currency  again slipped back to a low of 64.2, taking it closer to its yearly low of 64.28  hence raising worries that foreign portfolio outflows may create a vicious cycle between rupee and stock market.As it happened in August

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