How it is that the Dow Jones and Nasdaq Indices have their effect on the Indian Sensex?

Prasad Takalkar: How it is that the Dow Jones and Nasdaq Indices have their effect on the Indian Sensex?
The recession in the US is having its effect on the global markets.I want to know how does it impact the Indian markets too.

Answers and Views:

Answer by Nick Z
India’s economy depends a lot on international trade with Europe and North America. And if India’s trading partners are likely to have an economic recession. Then India’s economy will also likely suffer negative consequences. Jobs and profits that depend on foreign trade may be lost. And domestic economy will be affected too because people who loose jobs and income will be spending less on their needs in India.

Answer by garrisonbight
All of the world’s markets are interdependent so when the DOW is up… the world is up and when the world is down, the DOW is down.

Answer by Praveen Pradeep
I agree with the two people who answered this before me.