As we all know that, The stock market is very vast as there are many stocks listed in NSE and BSE.However, it's not that easy to pick the right stock because there are lots of factors, which are responsible for fluctuations in the stock market.
Fluctuations is of two types -
Rise & Fall – If a market is on rise due to its economy & strong employment increase in share prices then we can say that market is High or Bull. If share prices went down continuously then we say its Bear market trend it will slow down the economic condition.
It is not easy to predict & find whether market will go up or down.For this there are Research Teams having highly qualified and experienced financial experts who do research and generate reports based on their technical & fundamental research.
After doing a market analysis and research, they offer share market tips & calls .But then also it is not definite whether you will earn profit.Because its a volatile market.Now we come to the point “Why Rise & Fall In Market Happens? ” See there are many reasons behind this -
1. Increase/decrease in shares of companies – Companies sales & profit going high it will increase share prices or vice versa.Launching of new exciting products & services, or company is going to sign new big contracts in collaboration with other large & reputed firms. Competitor's shares went down, lots of people's are buying shares.And if company's earnings are declining than its share values also start declining. Scams in companies are responsible for downfall of company and it will lead to down its market price. Companies insiders & management experts sell off their own company's stock.
2. International Factors – There are a lot of factors that affect the stock market & these are:-
A. Country’s Currency - Relation between the stock market & currency is very complex & its valuation is not that easy. U.S. dollar has great impact on every segment of the stock market.If there is Strong dollar it will lead equity prices down.While If a Dollar becomes week it could cause rise in stock prices.
B. Worldwide Indices - Indices like Shanghai Stock Exchange of China, Nikkei of Japan, Hang Seng of Hong Kong. If most of these indices went strong or weak, it will affect market greatly.
C. Interest Rates - Interest rate hikes or decrement in international markets like China, Japan, U.S. creates too much fluctuation in share market of different countries.
D. Government Policies Of country - There are so many gov policies which are affecting market badly & these are - CRR, Interest rates, Repo rate Increasing in these rates will low down the capital & liquidity in market & hence creates a downfall in the market.Sometimes government impose extra charges in terms of taxes, excise duty, sales tax etc due to which whole market get affected.
3. Natural Disaster's - Floods & heavy rainfall.Floods when comes destroy's house, shops & other sources of income hence it will ruin economy of people's & firms.Too much rain creates imbalance in the agricultural production crops like tobacco, cotton etc gets damage while lesser rain will lead to lesser grain productions.One of the examples are - Typhoon Matmo, In 2014 Cyclone that affected Taiwan, China & Korea badly.It almost ruins everything in these countries including economic condition & as well development sectors.
4. Demand – Supply Chain : If there is demand for stocks increases, it creates shortage of that stock & resulting in increase in prices now buyers gets attracted to do bid on that stocks and hence it causes prices to go up.
So, these are the reasons that cause ups & downs, fluctuations in market. And you must know how & from where to get beneficial Share market tips .Name : Jitendra Wadhwa
Company : Research Via
Research Via is the one of the leading research advisory company with a strong presence among the various Stock Market Advisories. We offer stock advisory services, Share market tips & Free stock tips and much more. For more information visit our site @www.researchvia.com or call +919977785000.
How Share Market Tips Help During The Rise And Fall Of Stock Market
The main reasons that cause ups & downs, fluctuations in market. And you must know how & from where to get beneficial Share market tips .