6 Significant Ways Rains Can Affect Stock Markets

Significant Ways Rains Can Affect Stock Markets Stock investors standing with their umbrella in front of stock exchanges on a rainy day.

(4) Unexpected Timings Of Rains Can Cause Sudden Drop In Share Prices

It is one of the most popular ways rains can affect stock markets. Rains, winds or cloudy atmosphere is a gift of nature. It is completely a natural phenomenon that can occur anytime.

Sometimes, unexpected heavy rains or heavy winds in form of cyclone may occur. These forms of natural disasters can significantly damage standing crop to much higher extent. It can even cause premature fall of fruits & crops. This often results in insufficient amount of supply to meet the demand.

Thus, it causes a rise in rate of inflation. A high rate of inflation is again adversely affects the sales of several industries. Once, it is analyzed by investors, they start selling stocks of such entities. Therefore, a sudden drop in share price is noticed in such sectors.

[Read Also: 5 Ridiculous Stock Analyst Views After Quarterly Result]

(5) Delay In Monsoon Rains Can Increase Volatility

It is one of the most typical ways rains can affect stock markets. A delay in release of any positive or negative news in the market can increase volatility.

Similarly, a delay in monsoon rains in an agricultural economy can increase nervousness among investors or traders. This nervousness often results in increased volatility in stock markets.

In such situation, investors are often uncertain about the right direction of share markets. It can cause share price to move on either side.

Some investors can also prefer to remain on sidelines until things are clear. Thus, investors or traders are advised to trade cautiously during such uncertain times.

Image Source

Recommended Posts

About Editing Staff
At GetUpWise, we are a team of professional writers from different areas of subjects. We are conducting thorough research on each & every topic from highly reputed sources before writing any piece of article. Once research is done, we try our best efforts to provide informative piece of articles in an easy to understand manner. It is something that is extremely essential to meet our goal while reaching & offcourse building a strong online community. We do update our articles from time to time in order to provide the most latest information quickly. Thus, our articles can be used as a "way to gain smartness".

Leave a comment

Your email address will not be published.


This site uses Akismet to reduce spam. Learn how your comment data is processed.

Get Instant Access To GetUpWise Posts

Subscribe Us


Please do verify your email address by clicking a link sent to your email.

More in Stocks & Mutual Funds
Ways To Make Money From Stock Market Without Investment
10 Ways To Make Money From Stock Market Without Investment

(4) Become A Stock Broker Or Sub-Broker It is one of the great ways to earn cash from share markets...