Supply and demand

There are so many factors that affect the market. But if you strip all that is on the outside and look at the most basic factor, it is simple: supply and demand. Like all commodities, an imbalance between supply and demand will raise and lower the price of stock. If there is a sudden scarcity of potatoes, and more and more people are lining up to buy them, the price of potatoes will immediately skyrocket.

Similarly, if a company is doing well and everyone wants to buy shares of the same company, there will be a shortage of shares, leading to the shooting up of the stock price of the company. And the opposite happens if there are too many shares available, but no one wants to buy them. The stock price will plummet in that case.

Company related factors

It is obvious that if a company has public shares, then anything that is happening within the company will directly affect the share price. So, if the company is on the rise, with successful product launches, increased revenue, reduced debt, and more influx of investor capital, then the stock price of the company is bound to increase, because everyone would want to buy shares of such a company that is going from strength to strength.

However, if the company is incurring losses, having product failures, amassing debt, then a majority of the shareholders would want to dump the shares of such a company, reducing the stock price. Other factors that can make stock prices go up and down include changes in the management of the company, and mergers and acquisitions.

Investor sentiment

The sentiments of the investors themselves can also influence stock market prices. How the stock market performs has something to do with the way investors are putting in money. If investors are taking greater risks and investing aggressively, then stock prices will go up. On the other hand, if investors are more subdued, choosing safety over risk, then the stock prices will come down. There are two factors in this aspect:

Bullish market:
A bullish market is one where the investor is much more confident while taking risks and invests in a much more aggressive manner. When more people are investing confidently, the demand goes up, leading to increased stock prices.

Bearish market:
A bearish market is one where the investor is more worried about risks and losing his or her investment and therefore, invests with lesser confidence with safety in mind. This causes the stagnation of the market and the stock price eventually comes down.

Interest rates

The goings on at the Reserve Bank of India directly affect stock prices. The RBI decides the interest rates in India and they keep changing it at regular intervals to stabilise the Indian economy. Naturally, a higher interest rate will mean that companies will have to pay more for loans, resulting in lesser profits.

This will reduce stock prices. Inversely, lower interest rates mean that the company can now borrow money from banks for much lesser costs, thus saving their money and making a higher profit. In this case, the price of stock will go up.

Politics

One of the most important factors affecting stock market in India is the political climate of the country. If the political climate is dire, with the government appearing weak, risk of war, or if the public sentiment regarding the current government is not good, the price of stock will go down.

Similarly, if the government appears strong, with good public support, the stock price will be healthier. Also, if the government has good developmental policies, it will cause investors to invest with better enthusiasm, while government with a weak developmental agenda could lead to a decrease in stock prices.

Current events

News and other current events also affect the stock market. Current events that affect the stock market include any political turmoil, civil war or riots, or terrorist attacks. All these events are bound to make stock prices go down drastically and affect the market volatility.

Natural calamities

Calamities like earthquakes and floods drastically reduce the stock market price. This happens due to many reasons, like destruction of property and other assets. This causes companies to incur heavy losses which leads to falling of stock prices. Company sales are affected due to a breakdown of manufacturing and transport of goods. Therefore, when natural disasters occur, stock prices are bound to fall.

Exchange rates

How the Indian rupee stands in relation to the dollar or other foreign currency is also one of the factors affecting share prices in India. A strong rupee means that our economy is growing and this will lead to higher stock prices. However, there are different repercussions for different people in situations where the performance of our currency is concerned.

When the value of the rupee increases, prices of Indian commodities abroad go up, leading to lesser demand, and exporters suffer, making their stock prices go down. At the same time, importers can buy goods at lesser prices and their stock goes up. When the rupee weakens, exactly the opposite happens, that is the stock prices of exporters go up, while those of importers go down.

Supply and demand

There are so many factors that affect the market. But if you strip all that is on the outside and look at the most basic factor, it is simple: supply and demand. Like all commodities, an imbalance between supply and demand will raise and lower the price of stock. If there is a sudden scarcity of potatoes, and more and more people are lining up to buy them, the price of potatoes will immediately skyrocket.

Similarly, if a company is doing well and everyone wants to buy shares of the same company, there will be a shortage of shares, leading to the shooting up of the stock price of the company. And the opposite happens if there are too many shares available, but no one wants to buy them. The stock price will plummet in that case.

Company related factors

It is obvious that if a company has public shares, then anything that is happening within the company will directly affect the share price. So, if the company is on the rise, with successful product launches, increased revenue, reduced debt, and more influx of investor capital, then the stock price of the company is bound to increase, because everyone would want to buy shares of such a company that is going from strength to strength.

However, if the company is incurring losses, having product failures, amassing debt, then a majority of the shareholders would want to dump the shares of such a company, reducing the stock price. Other factors that can make stock prices go up and down include changes in the management of the company, and mergers and acquisitions.

Investor sentiment

The sentiments of the investors themselves can also influence stock market prices. How the stock market performs has something to do with the way investors are putting in money. If investors are taking greater risks and investing aggressively, then stock prices will go up. On the other hand, if investors are more subdued, choosing safety over risk, then the stock prices will come down. There are two factors in this aspect:

Bullish market:
A bullish market is one where the investor is much more confident while taking risks and invests in a much more aggressive manner. When more people are investing confidently, the demand goes up, leading to increased stock prices.

Bearish market:
A bearish market is one where the investor is more worried about risks and losing his or her investment and therefore, invests with lesser confidence with safety in mind. This causes the stagnation of the market and the stock price eventually comes down.

Interest rates

The goings on at the Reserve Bank of India directly affect stock prices. The RBI decides the interest rates in India and they keep changing it at regular intervals to stabilise the Indian economy. Naturally, a higher interest rate will mean that companies will have to pay more for loans, resulting in lesser profits.

This will reduce stock prices. Inversely, lower interest rates mean that the company can now borrow money from banks for much lesser costs, thus saving their money and making a higher profit. In this case, the price of stock will go up.

Politics

One of the most important factors affecting stock market in India is the political climate of the country. If the political climate is dire, with the government appearing weak, risk of war, or if the public sentiment regarding the current government is not good, the price of stock will go down.

Similarly, if the government appears strong, with good public support, the stock price will be healthier. Also, if the government has good developmental policies, it will cause investors to invest with better enthusiasm, while government with a weak developmental agenda could lead to a decrease in stock prices.

Current events

News and other current events also affect the stock market. Current events that affect the stock market include any political turmoil, civil war or riots, or terrorist attacks. All these events are bound to make stock prices go down drastically and affect the market volatility.

Natural calamities

Calamities like earthquakes and floods drastically reduce the stock market price. This happens due to many reasons, like destruction of property and other assets. This causes companies to incur heavy losses which leads to falling of stock prices. Company sales are affected due to a breakdown of manufacturing and transport of goods. Therefore, when natural disasters occur, stock prices are bound to fall.

Exchange rates

How the Indian rupee stands in relation to the dollar or other foreign currency is also one of the factors affecting share prices in India. A strong rupee means that our economy is growing and this will lead to higher stock prices. However, there are different repercussions for different people in situations where the performance of our currency is concerned.

When the value of the rupee increases, prices of Indian commodities abroad go up, leading to lesser demand, and exporters suffer, making their stock prices go down. At the same time, importers can buy goods at lesser prices and their stock goes up. When the rupee weakens, exactly the opposite happens, that is the stock prices of exporters go up, while those of importers go down.

Supply and demand

There are so many factors that affect the market. But if you strip all that is on the outside and look at the most basic factor, it is simple: supply and demand. Like all commodities, an imbalance between supply and demand will raise and lower the price of stock. If there is a sudden scarcity of potatoes, and more and more people are lining up to buy them, the price of potatoes will immediately skyrocket.

Similarly, if a company is doing well and everyone wants to buy shares of the same company, there will be a shortage of shares, leading to the shooting up of the stock price of the company. And the opposite happens if there are too many shares available, but no one wants to buy them. The stock price will plummet in that case.

Company related factors

It is obvious that if a company has public shares, then anything that is happening within the company will directly affect the share price. So, if the company is on the rise, with successful product launches, increased revenue, reduced debt, and more influx of investor capital, then the stock price of the company is bound to increase, because everyone would want to buy shares of such a company that is going from strength to strength.

However, if the company is incurring losses, having product failures, amassing debt, then a majority of the shareholders would want to dump the shares of such a company, reducing the stock price. Other factors that can make stock prices go up and down include changes in the management of the company, and mergers and acquisitions.

Investor sentiment

The sentiments of the investors themselves can also influence stock market prices. How the stock market performs has something to do with the way investors are putting in money. If investors are taking greater risks and investing aggressively, then stock prices will go up. On the other hand, if investors are more subdued, choosing safety over risk, then the stock prices will come down. There are two factors in this aspect:

Bullish market:
A bullish market is one where the investor is much more confident while taking risks and invests in a much more aggressive manner. When more people are investing confidently, the demand goes up, leading to increased stock prices.

Bearish market:
A bearish market is one where the investor is more worried about risks and losing his or her investment and therefore, invests with lesser confidence with safety in mind. This causes the stagnation of the market and the stock price eventually comes down.

Interest rates

The goings on at the Reserve Bank of India directly affect stock prices. The RBI decides the interest rates in India and they keep changing it at regular intervals to stabilise the Indian economy. Naturally, a higher interest rate will mean that companies will have to pay more for loans, resulting in lesser profits.

This will reduce stock prices. Inversely, lower interest rates mean that the company can now borrow money from banks for much lesser costs, thus saving their money and making a higher profit. In this case, the price of stock will go up.

Politics

One of the most important factors affecting stock market in India is the political climate of the country. If the political climate is dire, with the government appearing weak, risk of war, or if the public sentiment regarding the current government is not good, the price of stock will go down.

Similarly, if the government appears strong, with good public support, the stock price will be healthier. Also, if the government has good developmental policies, it will cause investors to invest with better enthusiasm, while government with a weak developmental agenda could lead to a decrease in stock prices.

Current events

News and other current events also affect the stock market. Current events that affect the stock market include any political turmoil, civil war or riots, or terrorist attacks. All these events are bound to make stock prices go down drastically and affect the market volatility.

Natural calamities

Calamities like earthquakes and floods drastically reduce the stock market price. This happens due to many reasons, like destruction of property and other assets. This causes companies to incur heavy losses which leads to falling of stock prices. Company sales are affected due to a breakdown of manufacturing and transport of goods. Therefore, when natural disasters occur, stock prices are bound to fall.

Exchange rates

How the Indian rupee stands in relation to the dollar or other foreign currency is also one of the factors affecting share prices in India. A strong rupee means that our economy is growing and this will lead to higher stock prices. However, there are different repercussions for different people in situations where the performance of our currency is concerned.

When the value of the rupee increases, prices of Indian commodities abroad go up, leading to lesser demand, and exporters suffer, making their stock prices go down. At the same time, importers can buy goods at lesser prices and their stock goes up. When the rupee weakens, exactly the opposite happens, that is the stock prices of exporters go up, while those of importers go down.

Supply and demand

There are so many factors that affect the market. But if you strip all that is on the outside and look at the most basic factor, it is simple: supply and demand. Like all commodities, an imbalance between supply and demand will raise and lower the price of stock. If there is a sudden scarcity of potatoes, and more and more people are lining up to buy them, the price of potatoes will immediately skyrocket.

Similarly, if a company is doing well and everyone wants to buy shares of the same company, there will be a shortage of shares, leading to the shooting up of the stock price of the company. And the opposite happens if there are too many shares available, but no one wants to buy them. The stock price will plummet in that case.

Company related factors

It is obvious that if a company has public shares, then anything that is happening within the company will directly affect the share price. So, if the company is on the rise, with successful product launches, increased revenue, reduced debt, and more influx of investor capital, then the stock price of the company is bound to increase, because everyone would want to buy shares of such a company that is going from strength to strength.

However, if the company is incurring losses, having product failures, amassing debt, then a majority of the shareholders would want to dump the shares of such a company, reducing the stock price. Other factors that can make stock prices go up and down include changes in the management of the company, and mergers and acquisitions.

Investor sentiment

The sentiments of the investors themselves can also influence stock market prices. How the stock market performs has something to do with the way investors are putting in money. If investors are taking greater risks and investing aggressively, then stock prices will go up. On the other hand, if investors are more subdued, choosing safety over risk, then the stock prices will come down. There are two factors in this aspect:

Bullish market:
A bullish market is one where the investor is much more confident while taking risks and invests in a much more aggressive manner. When more people are investing confidently, the demand goes up, leading to increased stock prices.

Bearish market:
A bearish market is one where the investor is more worried about risks and losing his or her investment and therefore, invests with lesser confidence with safety in mind. This causes the stagnation of the market and the stock price eventually comes down.

Interest rates

The goings on at the Reserve Bank of India directly affect stock prices. The RBI decides the interest rates in India and they keep changing it at regular intervals to stabilise the Indian economy. Naturally, a higher interest rate will mean that companies will have to pay more for loans, resulting in lesser profits.

This will reduce stock prices. Inversely, lower interest rates mean that the company can now borrow money from banks for much lesser costs, thus saving their money and making a higher profit. In this case, the price of stock will go up.

Politics

One of the most important factors affecting stock market in India is the political climate of the country. If the political climate is dire, with the government appearing weak, risk of war, or if the public sentiment regarding the current government is not good, the price of stock will go down.

Similarly, if the government appears strong, with good public support, the stock price will be healthier. Also, if the government has good developmental policies, it will cause investors to invest with better enthusiasm, while government with a weak developmental agenda could lead to a decrease in stock prices.

Current events

News and other current events also affect the stock market. Current events that affect the stock market include any political turmoil, civil war or riots, or terrorist attacks. All these events are bound to make stock prices go down drastically and affect the market volatility.

Natural calamities

Calamities like earthquakes and floods drastically reduce the stock market price. This happens due to many reasons, like destruction of property and other assets. This causes companies to incur heavy losses which leads to falling of stock prices. Company sales are affected due to a breakdown of manufacturing and transport of goods. Therefore, when natural disasters occur, stock prices are bound to fall.

Exchange rates

How the Indian rupee stands in relation to the dollar or other foreign currency is also one of the factors affecting share prices in India. A strong rupee means that our economy is growing and this will lead to higher stock prices. However, there are different repercussions for different people in situations where the performance of our currency is concerned.

When the value of the rupee increases, prices of Indian commodities abroad go up, leading to lesser demand, and exporters suffer, making their stock prices go down. At the same time, importers can buy goods at lesser prices and their stock goes up. When the rupee weakens, exactly the opposite happens, that is the stock prices of exporters go up, while those of importers go down.

Supply and demand

There are so many factors that affect the market. But if you strip all that is on the outside and look at the most basic factor, it is simple: supply and demand. Like all commodities, an imbalance between supply and demand will raise and lower the price of stock. If there is a sudden scarcity of potatoes, and more and more people are lining up to buy them, the price of potatoes will immediately skyrocket.

Similarly, if a company is doing well and everyone wants to buy shares of the same company, there will be a shortage of shares, leading to the shooting up of the stock price of the company. And the opposite happens if there are too many shares available, but no one wants to buy them. The stock price will plummet in that case.

Company related factors

It is obvious that if a company has public shares, then anything that is happening within the company will directly affect the share price. So, if the company is on the rise, with successful product launches, increased revenue, reduced debt, and more influx of investor capital, then the stock price of the company is bound to increase, because everyone would want to buy shares of such a company that is going from strength to strength.

However, if the company is incurring losses, having product failures, amassing debt, then a majority of the shareholders would want to dump the shares of such a company, reducing the stock price. Other factors that can make stock prices go up and down include changes in the management of the company, and mergers and acquisitions.

Investor sentiment

The sentiments of the investors themselves can also influence stock market prices. How the stock market performs has something to do with the way investors are putting in money. If investors are taking greater risks and investing aggressively, then stock prices will go up. On the other hand, if investors are more subdued, choosing safety over risk, then the stock prices will come down. There are two factors in this aspect:

Bullish market:
A bullish market is one where the investor is much more confident while taking risks and invests in a much more aggressive manner. When more people are investing confidently, the demand goes up, leading to increased stock prices.

Bearish market:
A bearish market is one where the investor is more worried about risks and losing his or her investment and therefore, invests with lesser confidence with safety in mind. This causes the stagnation of the market and the stock price eventually comes down.

Interest rates

The goings on at the Reserve Bank of India directly affect stock prices. The RBI decides the interest rates in India and they keep changing it at regular intervals to stabilise the Indian economy. Naturally, a higher interest rate will mean that companies will have to pay more for loans, resulting in lesser profits.

This will reduce stock prices. Inversely, lower interest rates mean that the company can now borrow money from banks for much lesser costs, thus saving their money and making a higher profit. In this case, the price of stock will go up.

Politics

One of the most important factors affecting stock market in India is the political climate of the country. If the political climate is dire, with the government appearing weak, risk of war, or if the public sentiment regarding the current government is not good, the price of stock will go down.

Similarly, if the government appears strong, with good public support, the stock price will be healthier. Also, if the government has good developmental policies, it will cause investors to invest with better enthusiasm, while government with a weak developmental agenda could lead to a decrease in stock prices.

Current events

News and other current events also affect the stock market. Current events that affect the stock market include any political turmoil, civil war or riots, or terrorist attacks. All these events are bound to make stock prices go down drastically and affect the market volatility.

Natural calamities

Calamities like earthquakes and floods drastically reduce the stock market price. This happens due to many reasons, like destruction of property and other assets. This causes companies to incur heavy losses which leads to falling of stock prices. Company sales are affected due to a breakdown of manufacturing and transport of goods. Therefore, when natural disasters occur, stock prices are bound to fall.

Exchange rates

How the Indian rupee stands in relation to the dollar or other foreign currency is also one of the factors affecting share prices in India. A strong rupee means that our economy is growing and this will lead to higher stock prices. However, there are different repercussions for different people in situations where the performance of our currency is concerned.

When the value of the rupee increases, prices of Indian commodities abroad go up, leading to lesser demand, and exporters suffer, making their stock prices go down. At the same time, importers can buy goods at lesser prices and their stock goes up. When the rupee weakens, exactly the opposite happens, that is the stock prices of exporters go up, while those of importers go down.

Supply and demand

There are so many factors that affect the market. But if you strip all that is on the outside and look at the most basic factor, it is simple: supply and demand. Like all commodities, an imbalance between supply and demand will raise and lower the price of stock. If there is a sudden scarcity of potatoes, and more and more people are lining up to buy them, the price of potatoes will immediately skyrocket.

Similarly, if a company is doing well and everyone wants to buy shares of the same company, there will be a shortage of shares, leading to the shooting up of the stock price of the company. And the opposite happens if there are too many shares available, but no one wants to buy them. The stock price will plummet in that case.

Company related factors

It is obvious that if a company has public shares, then anything that is happening within the company will directly affect the share price. So, if the company is on the rise, with successful product launches, increased revenue, reduced debt, and more influx of investor capital, then the stock price of the company is bound to increase, because everyone would want to buy shares of such a company that is going from strength to strength.

However, if the company is incurring losses, having product failures, amassing debt, then a majority of the shareholders would want to dump the shares of such a company, reducing the stock price. Other factors that can make stock prices go up and down include changes in the management of the company, and mergers and acquisitions.

Investor sentiment

The sentiments of the investors themselves can also influence stock market prices. How the stock market performs has something to do with the way investors are putting in money. If investors are taking greater risks and investing aggressively, then stock prices will go up. On the other hand, if investors are more subdued, choosing safety over risk, then the stock prices will come down. There are two factors in this aspect:

Bullish market:
A bullish market is one where the investor is much more confident while taking risks and invests in a much more aggressive manner. When more people are investing confidently, the demand goes up, leading to increased stock prices.

Bearish market:
A bearish market is one where the investor is more worried about risks and losing his or her investment and therefore, invests with lesser confidence with safety in mind. This causes the stagnation of the market and the stock price eventually comes down.

Interest rates

The goings on at the Reserve Bank of India directly affect stock prices. The RBI decides the interest rates in India and they keep changing it at regular intervals to stabilise the Indian economy. Naturally, a higher interest rate will mean that companies will have to pay more for loans, resulting in lesser profits.

This will reduce stock prices. Inversely, lower interest rates mean that the company can now borrow money from banks for much lesser costs, thus saving their money and making a higher profit. In this case, the price of stock will go up.

Politics

One of the most important factors affecting stock market in India is the political climate of the country. If the political climate is dire, with the government appearing weak, risk of war, or if the public sentiment regarding the current government is not good, the price of stock will go down.

Similarly, if the government appears strong, with good public support, the stock price will be healthier. Also, if the government has good developmental policies, it will cause investors to invest with better enthusiasm, while government with a weak developmental agenda could lead to a decrease in stock prices.

Current events

News and other current events also affect the stock market. Current events that affect the stock market include any political turmoil, civil war or riots, or terrorist attacks. All these events are bound to make stock prices go down drastically and affect the market volatility.

Natural calamities

Calamities like earthquakes and floods drastically reduce the stock market price. This happens due to many reasons, like destruction of property and other assets. This causes companies to incur heavy losses which leads to falling of stock prices. Company sales are affected due to a breakdown of manufacturing and transport of goods. Therefore, when natural disasters occur, stock prices are bound to fall.

Exchange rates

How the Indian rupee stands in relation to the dollar or other foreign currency is also one of the factors affecting share prices in India. A strong rupee means that our economy is growing and this will lead to higher stock prices. However, there are different repercussions for different people in situations where the performance of our currency is concerned.

When the value of the rupee increases, prices of Indian commodities abroad go up, leading to lesser demand, and exporters suffer, making their stock prices go down. At the same time, importers can buy goods at lesser prices and their stock goes up. When the rupee weakens, exactly the opposite happens, that is the stock prices of exporters go up, while those of importers go down.

Supply and demand

There are so many factors that affect the market. But if you strip all that is on the outside and look at the most basic factor, it is simple: supply and demand. Like all commodities, an imbalance between supply and demand will raise and lower the price of stock. If there is a sudden scarcity of potatoes, and more and more people are lining up to buy them, the price of potatoes will immediately skyrocket.

Similarly, if a company is doing well and everyone wants to buy shares of the same company, there will be a shortage of shares, leading to the shooting up of the stock price of the company. And the opposite happens if there are too many shares available, but no one wants to buy them. The stock price will plummet in that case.

Company related factors

It is obvious that if a company has public shares, then anything that is happening within the company will directly affect the share price. So, if the company is on the rise, with successful product launches, increased revenue, reduced debt, and more influx of investor capital, then the stock price of the company is bound to increase, because everyone would want to buy shares of such a company that is going from strength to strength.

However, if the company is incurring losses, having product failures, amassing debt, then a majority of the shareholders would want to dump the shares of such a company, reducing the stock price. Other factors that can make stock prices go up and down include changes in the management of the company, and mergers and acquisitions.

Investor sentiment

The sentiments of the investors themselves can also influence stock market prices. How the stock market performs has something to do with the way investors are putting in money. If investors are taking greater risks and investing aggressively, then stock prices will go up. On the other hand, if investors are more subdued, choosing safety over risk, then the stock prices will come down. There are two factors in this aspect:

Bullish market:
A bullish market is one where the investor is much more confident while taking risks and invests in a much more aggressive manner. When more people are investing confidently, the demand goes up, leading to increased stock prices.

Bearish market:
A bearish market is one where the investor is more worried about risks and losing his or her investment and therefore, invests with lesser confidence with safety in mind. This causes the stagnation of the market and the stock price eventually comes down.

Interest rates

The goings on at the Reserve Bank of India directly affect stock prices. The RBI decides the interest rates in India and they keep changing it at regular intervals to stabilise the Indian economy. Naturally, a higher interest rate will mean that companies will have to pay more for loans, resulting in lesser profits.

This will reduce stock prices. Inversely, lower interest rates mean that the company can now borrow money from banks for much lesser costs, thus saving their money and making a higher profit. In this case, the price of stock will go up.

Politics

One of the most important factors affecting stock market in India is the political climate of the country. If the political climate is dire, with the government appearing weak, risk of war, or if the public sentiment regarding the current government is not good, the price of stock will go down.

Similarly, if the government appears strong, with good public support, the stock price will be healthier. Also, if the government has good developmental policies, it will cause investors to invest with better enthusiasm, while government with a weak developmental agenda could lead to a decrease in stock prices.

Current events

News and other current events also affect the stock market. Current events that affect the stock market include any political turmoil, civil war or riots, or terrorist attacks. All these events are bound to make stock prices go down drastically and affect the market volatility.

Natural calamities

Calamities like earthquakes and floods drastically reduce the stock market price. This happens due to many reasons, like destruction of property and other assets. This causes companies to incur heavy losses which leads to falling of stock prices. Company sales are affected due to a breakdown of manufacturing and transport of goods. Therefore, when natural disasters occur, stock prices are bound to fall.

Exchange rates

How the Indian rupee stands in relation to the dollar or other foreign currency is also one of the factors affecting share prices in India. A strong rupee means that our economy is growing and this will lead to higher stock prices. However, there are different repercussions for different people in situations where the performance of our currency is concerned.

When the value of the rupee increases, prices of Indian commodities abroad go up, leading to lesser demand, and exporters suffer, making their stock prices go down. At the same time, importers can buy goods at lesser prices and their stock goes up. When the rupee weakens, exactly the opposite happens, that is the stock prices of exporters go up, while those of importers go down.

Supply and demand

There are so many factors that affect the market. But if you strip all that is on the outside and look at the most basic factor, it is simple: supply and demand. Like all commodities, an imbalance between supply and demand will raise and lower the price of stock. If there is a sudden scarcity of potatoes, and more and more people are lining up to buy them, the price of potatoes will immediately skyrocket.

Similarly, if a company is doing well and everyone wants to buy shares of the same company, there will be a shortage of shares, leading to the shooting up of the stock price of the company. And the opposite happens if there are too many shares available, but no one wants to buy them. The stock price will plummet in that case.

Company related factors

It is obvious that if a company has public shares, then anything that is happening within the company will directly affect the share price. So, if the company is on the rise, with successful product launches, increased revenue, reduced debt, and more influx of investor capital, then the stock price of the company is bound to increase, because everyone would want to buy shares of such a company that is going from strength to strength.

However, if the company is incurring losses, having product failures, amassing debt, then a majority of the shareholders would want to dump the shares of such a company, reducing the stock price. Other factors that can make stock prices go up and down include changes in the management of the company, and mergers and acquisitions.

Investor sentiment

The sentiments of the investors themselves can also influence stock market prices. How the stock market performs has something to do with the way investors are putting in money. If investors are taking greater risks and investing aggressively, then stock prices will go up. On the other hand, if investors are more subdued, choosing safety over risk, then the stock prices will come down. There are two factors in this aspect:

Bullish market:
A bullish market is one where the investor is much more confident while taking risks and invests in a much more aggressive manner. When more people are investing confidently, the demand goes up, leading to increased stock prices.

Bearish market:
A bearish market is one where the investor is more worried about risks and losing his or her investment and therefore, invests with lesser confidence with safety in mind. This causes the stagnation of the market and the stock price eventually comes down.

Interest rates

The goings on at the Reserve Bank of India directly affect stock prices. The RBI decides the interest rates in India and they keep changing it at regular intervals to stabilise the Indian economy. Naturally, a higher interest rate will mean that companies will have to pay more for loans, resulting in lesser profits.

This will reduce stock prices. Inversely, lower interest rates mean that the company can now borrow money from banks for much lesser costs, thus saving their money and making a higher profit. In this case, the price of stock will go up.

Politics

One of the most important factors affecting stock market in India is the political climate of the country. If the political climate is dire, with the government appearing weak, risk of war, or if the public sentiment regarding the current government is not good, the price of stock will go down.

Similarly, if the government appears strong, with good public support, the stock price will be healthier. Also, if the government has good developmental policies, it will cause investors to invest with better enthusiasm, while government with a weak developmental agenda could lead to a decrease in stock prices.

Current events

News and other current events also affect the stock market. Current events that affect the stock market include any political turmoil, civil war or riots, or terrorist attacks. All these events are bound to make stock prices go down drastically and affect the market volatility.

Natural calamities

Calamities like earthquakes and floods drastically reduce the stock market price. This happens due to many reasons, like destruction of property and other assets. This causes companies to incur heavy losses which leads to falling of stock prices. Company sales are affected due to a breakdown of manufacturing and transport of goods. Therefore, when natural disasters occur, stock prices are bound to fall.

Exchange rates

How the Indian rupee stands in relation to the dollar or other foreign currency is also one of the factors affecting share prices in India. A strong rupee means that our economy is growing and this will lead to higher stock prices. However, there are different repercussions for different people in situations where the performance of our currency is concerned.

When the value of the rupee increases, prices of Indian commodities abroad go up, leading to lesser demand, and exporters suffer, making their stock prices go down. At the same time, importers can buy goods at lesser prices and their stock goes up. When the rupee weakens, exactly the opposite happens, that is the stock prices of exporters go up, while those of importers go down.

Supply and demand

There are so many factors that affect the market. But if you strip all that is on the outside and look at the most basic factor, it is simple: supply and demand. Like all commodities, an imbalance between supply and demand will raise and lower the price of stock. If there is a sudden scarcity of potatoes, and more and more people are lining up to buy them, the price of potatoes will immediately skyrocket.

Similarly, if a company is doing well and everyone wants to buy shares of the same company, there will be a shortage of shares, leading to the shooting up of the stock price of the company. And the opposite happens if there are too many shares available, but no one wants to buy them. The stock price will plummet in that case.

Company related factors

It is obvious that if a company has public shares, then anything that is happening within the company will directly affect the share price. So, if the company is on the rise, with successful product launches, increased revenue, reduced debt, and more influx of investor capital, then the stock price of the company is bound to increase, because everyone would want to buy shares of such a company that is going from strength to strength.

However, if the company is incurring losses, having product failures, amassing debt, then a majority of the shareholders would want to dump the shares of such a company, reducing the stock price. Other factors that can make stock prices go up and down include changes in the management of the company, and mergers and acquisitions.

Investor sentiment

The sentiments of the investors themselves can also influence stock market prices. How the stock market performs has something to do with the way investors are putting in money. If investors are taking greater risks and investing aggressively, then stock prices will go up. On the other hand, if investors are more subdued, choosing safety over risk, then the stock prices will come down. There are two factors in this aspect:

Bullish market:
A bullish market is one where the investor is much more confident while taking risks and invests in a much more aggressive manner. When more people are investing confidently, the demand goes up, leading to increased stock prices.

Bearish market:
A bearish market is one where the investor is more worried about risks and losing his or her investment and therefore, invests with lesser confidence with safety in mind. This causes the stagnation of the market and the stock price eventually comes down.

Interest rates

The goings on at the Reserve Bank of India directly affect stock prices. The RBI decides the interest rates in India and they keep changing it at regular intervals to stabilise the Indian economy. Naturally, a higher interest rate will mean that companies will have to pay more for loans, resulting in lesser profits.

This will reduce stock prices. Inversely, lower interest rates mean that the company can now borrow money from banks for much lesser costs, thus saving their money and making a higher profit. In this case, the price of stock will go up.

Politics

One of the most important factors affecting stock market in India is the political climate of the country. If the political climate is dire, with the government appearing weak, risk of war, or if the public sentiment regarding the current government is not good, the price of stock will go down.

Similarly, if the government appears strong, with good public support, the stock price will be healthier. Also, if the government has good developmental policies, it will cause investors to invest with better enthusiasm, while government with a weak developmental agenda could lead to a decrease in stock prices.

Current events

News and other current events also affect the stock market. Current events that affect the stock market include any political turmoil, civil war or riots, or terrorist attacks. All these events are bound to make stock prices go down drastically and affect the market volatility.

Natural calamities

Calamities like earthquakes and floods drastically reduce the stock market price. This happens due to many reasons, like destruction of property and other assets. This causes companies to incur heavy losses which leads to falling of stock prices. Company sales are affected due to a breakdown of manufacturing and transport of goods. Therefore, when natural disasters occur, stock prices are bound to fall.

Exchange rates

How the Indian rupee stands in relation to the dollar or other foreign currency is also one of the factors affecting share prices in India. A strong rupee means that our economy is growing and this will lead to higher stock prices. However, there are different repercussions for different people in situations where the performance of our currency is concerned.

When the value of the rupee increases, prices of Indian commodities abroad go up, leading to lesser demand, and exporters suffer, making their stock prices go down. At the same time, importers can buy goods at lesser prices and their stock goes up. When the rupee weakens, exactly the opposite happens, that is the stock prices of exporters go up, while those of importers go down.

Supply and demand

There are so many factors that affect the market. But if you strip all that is on the outside and look at the most basic factor, it is simple: supply and demand. Like all commodities, an imbalance between supply and demand will raise and lower the price of stock. If there is a sudden scarcity of potatoes, and more and more people are lining up to buy them, the price of potatoes will immediately skyrocket.

Similarly, if a company is doing well and everyone wants to buy shares of the same company, there will be a shortage of shares, leading to the shooting up of the stock price of the company. And the opposite happens if there are too many shares available, but no one wants to buy them. The stock price will plummet in that case.

Company related factors

It is obvious that if a company has public shares, then anything that is happening within the company will directly affect the share price. So, if the company is on the rise, with successful product launches, increased revenue, reduced debt, and more influx of investor capital, then the stock price of the company is bound to increase, because everyone would want to buy shares of such a company that is going from strength to strength.

However, if the company is incurring losses, having product failures, amassing debt, then a majority of the shareholders would want to dump the shares of such a company, reducing the stock price. Other factors that can make stock prices go up and down include changes in the management of the company, and mergers and acquisitions.

Investor sentiment

The sentiments of the investors themselves can also influence stock market prices. How the stock market performs has something to do with the way investors are putting in money. If investors are taking greater risks and investing aggressively, then stock prices will go up. On the other hand, if investors are more subdued, choosing safety over risk, then the stock prices will come down. There are two factors in this aspect:

Bullish market:
A bullish market is one where the investor is much more confident while taking risks and invests in a much more aggressive manner. When more people are investing confidently, the demand goes up, leading to increased stock prices.

Bearish market:
A bearish market is one where the investor is more worried about risks and losing his or her investment and therefore, invests with lesser confidence with safety in mind. This causes the stagnation of the market and the stock price eventually comes down.

Interest rates

The goings on at the Reserve Bank of India directly affect stock prices. The RBI decides the interest rates in India and they keep changing it at regular intervals to stabilise the Indian economy. Naturally, a higher interest rate will mean that companies will have to pay more for loans, resulting in lesser profits.

This will reduce stock prices. Inversely, lower interest rates mean that the company can now borrow money from banks for much lesser costs, thus saving their money and making a higher profit. In this case, the price of stock will go up.

Politics

One of the most important factors affecting stock market in India is the political climate of the country. If the political climate is dire, with the government appearing weak, risk of war, or if the public sentiment regarding the current government is not good, the price of stock will go down.

Similarly, if the government appears strong, with good public support, the stock price will be healthier. Also, if the government has good developmental policies, it will cause investors to invest with better enthusiasm, while government with a weak developmental agenda could lead to a decrease in stock prices.

Current events

News and other current events also affect the stock market. Current events that affect the stock market include any political turmoil, civil war or riots, or terrorist attacks. All these events are bound to make stock prices go down drastically and affect the market volatility.

Natural calamities

Calamities like earthquakes and floods drastically reduce the stock market price. This happens due to many reasons, like destruction of property and other assets. This causes companies to incur heavy losses which leads to falling of stock prices. Company sales are affected due to a breakdown of manufacturing and transport of goods. Therefore, when natural disasters occur, stock prices are bound to fall.

Exchange rates

How the Indian rupee stands in relation to the dollar or other foreign currency is also one of the factors affecting share prices in India. A strong rupee means that our economy is growing and this will lead to higher stock prices. However, there are different repercussions for different people in situations where the performance of our currency is concerned.

When the value of the rupee increases, prices of Indian commodities abroad go up, leading to lesser demand, and exporters suffer, making their stock prices go down. At the same time, importers can buy goods at lesser prices and their stock goes up. When the rupee weakens, exactly the opposite happens, that is the stock prices of exporters go up, while those of importers go down.