What are the major factors that affect stock prices

#1
Hello Friends,

I thought this will be useful to all members in this forum - what are all major factors that affect stock prices for all sectors or a particular sector...

So far I have heard/seen/witnessed following...

1) Crude/Oil/Gas price :- Not sure how through and which sectors and which way it is positive/negetive.

2) IIP :- Industry Production Index (Not sure how through and which sectors and which way it is positive/negetive).

3) Inflation Index :- Not sure how through and which sectors and which way it is positive/negetive.

4) Govt Stabilities :- Not sure how through and which sectors and which way it is positive/negetive.

5) RBI Repo rates :- I have heard this will impact Banking and Real Estate
industries as this means more interest rate less profit....but which way it is positive/negetive.

6) Draught :- Not sure how through and which sectors and which way it is positive/negetive.

7) Company EPS/EP/SMA/EMA etc etc

Any more input/corrections?
 
#3
1 corporate results
2 Buy back news from good companies.
3 Tax benefits
4 Merger and Demerger
5 Splitting
6 change of groups for eg. from group B1 to A
7 New projects or contracts got by companies
8 Listing of companies in Nasdaq,Nyse etc. and their performance their.
9 Short and long covering
10 Taking Over of competitors business.
11 Before rights and public issues.
12 winnin or losing a case of suit
13 strikes
14 Demand for products of the company
15 Availability of raw material
16 Politcal situation
17 Fear of war
18 Good monsoon rains
19 Gdp
20 INdustrial growth
21 favourable industrial policies from govt
22 Inflation
23 Interest rates
25 crudeoil
26 change in the value of rupee
27 FII
28 Rbi monetary policy
29 continuous holidays
30 Terrorist attacks
 
C

Czar

Guest
#4
only one factor will have direct impact, US Markets, cause whatever we would like to believe, fact is World markets looks at US for directions, if dow remains bearish so will all other markets & if they start consolidating, so will all... if US goes in depression , most countries will suffer, reason Simple US is a big consumer for everything...
 
#5
- Company announcements (Management change / Bonus issue announcement / Dividend / Rights issue)

- Global Industry trends (If there is an issue in US financial institutions, they will pull out their investments from the emerging markets; hence there will be slide in Asian markets)

Regards

Raj
 
#6
only one factor will have direct impact, US Markets, cause whatever we would like to believe, fact is World markets looks at US for directions, if dow remains bearish so will all other markets & if they start consolidating, so will all... if US goes in depression , most countries will suffer, reason Simple US is a big consumer for everything...
Yes I agree its the US Market, but its more complex than that.

1. Indian companies are more dependant on local consumption than US Markets in general. Our companies are doing a substantial business in the Asian, Middle Eastern and European markets.

2. The problem is more to do with the US Dollar than the real business dealing. We are sitting on a pile of dollar reserves that is dragging down the bottom lines. Other countries with huge reserves have a real plan in dealing with the reserves, for example china's mega fund, japans reinvestment of dollars in creating plants within the US itself and middle easts frenzy buying of banks, real estate and financial institutions across US and Europe. We dont have a sound National Plan for the disposition of these reserves. Infact, the policy seems to be to artifically maintain Rupee value versus the dollar, this may backfire with vengance considering the dollar is a fallen currency. The Federal Reserve in US is printing dollars faster than counting their losses, this is unsustainable considering that the US liabilities are reaching almost 10% of their GDP. There is only one way dollar is going - DOWN. This will hurt India when everyone gets to pull out of the dollar and we are left holding the bag of seashells.

3. In my view the real obstacle to Indian markets is the repositioning of investemnts by FIIs. India is among the only few opportunities left with 7-8% growth and lots of money on the sidelines. FIIS will take full advantage of this and prop up the market to lure in retailers and then bail out on a dime, this will truly hurt indian markets because the markets do not have a cash commitment even for medium term. The losses have been huge for global investors and they will milk out the emerging markets for profits at every opportunity. Be ware of the created false rallies.

Happy Trading
 

krishna23

Active Member
#7
whatever affects the market participants will have an impact on the prices...its upto you what u do after u absorb the information u either buy,sell or just sit it out...
 
#8
If you want academic help for your education like CFA/Acturial Sciences; then this is the worst part of the forum to place your thread.
Thanks - the purpose of this tread is not for academic purpose but to make some sense of stock PRICING movement.

For example :-

1) How does BSE/NSE decide to open the market at certain level/price for each stocks?

2) Why does price of the stock move within fraction of second to +-2% or even more...

In short what factors in people mind/actions or FII/QIB/or whoever chages above two - in real sense not philosofically...
 
C

Czar

Guest
#9
Yes I agree its the US Market, but its more complex than that.

1. Indian companies are more dependant on local consumption than US Markets in general. Our companies are doing a substantial business in the Asian, Middle Eastern and European markets.

We are only talking about indian stock price not growth here, do you really think that if Stock markets go in a bear market the economy will stop growing ?

2. The problem is more to do with the US Dollar than the real business dealing. We are sitting on a pile of dollar reserves that is dragging down the bottom lines. Other countries with huge reserves have a real plan in dealing with the reserves, for example china's mega fund, japans reinvestment of dollars in creating plants within the US itself and middle easts frenzy buying of banks, real estate and financial institutions across US and Europe. We dont have a sound National Plan for the disposition of these reserves. Infact, the policy seems to be to artifically maintain Rupee value versus the dollar, this may backfire with vengance considering the dollar is a fallen currency. The Federal Reserve in US is printing dollars faster than counting their losses, this is unsustainable considering that the US liabilities are reaching almost 10% of their GDP. There is only one way dollar is going - DOWN. This will hurt India when everyone gets to pull out of the dollar and we are left holding the bag of seashells.

Dont underestimate the dollar, there are many reasons to keep dollar value down, due to china's unwillingness to devalue its currency & keep dumping all around the world & to boost US exporting companies & discourage the dumping of Imports from everywhere else, also you cannot compare India with the other countries, we still have a long way & need the reserves due to our trade deficit & to avoid any crisis as had occurred in Asia few years back. Also we are still young to open currency, maintaining Rupee value so as not to impact Importers / exporters / Inflation / Crude Imports / Overspending of Dollar, etc. You really have to look at it at macro level

3. In my view the real obstacle to Indian markets is the repositioning of investemnts by FIIs. India is among the only few opportunities left with 7-8% growth and lots of money on the sidelines. FIIS will take full advantage of this and prop up the market to lure in retailers and then bail out on a dime, this will truly hurt indian markets because the markets do not have a cash commitment even for medium term. The losses have been huge for global investors and they will milk out the emerging markets for profits at every opportunity. Be ware of the created false rallies.

The Real problem is not FIIs but Lack of sufficient FDIs, A long term rising stock market leads only to mega inflation, etc a cooling off of few years will not matter to the overall state of Investments to any serious party, I dont think the major Investments made by FIIs over 15/20 years span will be impacted, only the Fast / Black money coming & going through Hedge funds will suffers which really does not matter

Happy Trading
Read blue replies & to top that tell me how many bull markets have lasted anywhere without the US being in an Uptrend, so the only fact is DOW. :cool:
 

krishna23

Active Member
#10
1) How does BSE/NSE decide to open the market at certain level/price for each stocks?
...for this why don't you visit their respective websites and find what stocks constitute the bse 30 and nifty 50 and in what percentage..
2) Why does price of the stock move within fraction of second to +-2% or even more?
...this question can be rephrased as ,what is bid price and ask price?...google that...
 

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