Regulatory & Policy Shocks: What Investors Need to Watch
In the dynamic world of investing, markets are driven not only by company performance or economic trends but also by government regulations and policy decisions . Often, these decisions can create sudden volatility — known as regulatory or policy shocks — which can significantly impact stock prices, investor sentiment, and even entire sectors. For traders and investors, understanding how to navigate these shocks is essential. Whether you’re a beginner learning through a trading course in Dehradun or an experienced market participant, this knowledge can help you stay ahead and protect your capital. 🧩 What Are Regulatory & Policy Shocks? A regulatory or policy shock occurs when the government or regulatory authorities (like SEBI, RBI, or the Finance Ministry) announce a new rule, restriction, or reform that directly impacts businesses or the financial markets. These shocks can be: Positive: such as tax cuts, subsidies, or liberalization policies that boost investor...