Indian stock markets have not yet acquired the level of maturity seen in the developed countries and they often react to information, often trivial, related to individuals. If the market reacts to information that has significant bearing on the upward or downward trend, it is understandable, says Surya Chelikani, Associate Professor of Finance, School of Business, Quinnipiac University. He said here on Tuesday that volatility in the Indian stock market reflects its immaturity. On the other hand, the crashes seen in the US stock market are chiefly due to lack of regulations. “The US Government is playing into the hands of the corporations in downsizing regulators,” he said.

Professor Chelikani teaches theory and practice of investment analysis in a global environment, fixed income investments and financial decision making at the Lender School of Business in Quinnipiac University.

He said, “The Chinese economy is heavily export-oriented and is vulnerable to the volatility of the buying markets. If there is a problem in the US, the Chinese economy suffers.”

India is better because it has a sizeable domestic market, he added.

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