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Retail investors are individual investors who buy and sell securities, such as stocks, bonds, and mutual funds, typically through a brokerage firm or online trading platform. They are not professional investors, but rather individuals seeking to grow their wealth over time.¹ When Foreign Institutional Investors (FIIs) withdraw money from the market, retail investors often incur more losses due to several reasons: - *Liquidity Crisis*: FIIs are significant players in the market, and their withdrawal can lead to a liquidity crisis, making it difficult for retail investors to sell their shares at a fair price. - *Market Volatility*: FIIs' withdrawal can cause market volatility, leading to a sharp decline in stock prices, which can result in significant losses for retail investors. - *Lack of Risk Management*: Retail investors often lack the sophistication and resources to manage risk effectively, making them more vulnerable to market downturns triggered by FIIs' withdrawal. - *Emo...

When the Federal Reserve (Fed) cuts interest rates in the United States, it can have a ripple effect on the Indian share market. Here are some reasons why: 1. * Global Economic Impact *: The Fed's interest rate decisions influence the global economy. A rate cut can signal a slowdown in the US economy, which can impact India's exports, trade, and overall economic growth. 2. * Foreign Institutional Investors (FIIs) *: FIIs play a significant role in the Indian stock market. When the Fed cuts interest rates, FIIs might withdraw funds from emerging markets like India to invest in US markets, seeking better returns. This can lead to a sell-off in Indian stocks. 3. * Currency Fluctuations *: A Fed rate cut can weaken the US dollar. As a result, the Indian rupee might strengthen, making Indian exports more expensive and potentially impacting the country's trade balance. 4. * Inflation and Interest Rates* : A rate cut in the US can lead to higher inflation expectations globally. Th...