What Causes Stock Prices to Change?

Let’s first look at what causes a company’s stock price to rise or fall from its existence.


Let’s first look at what causes a company’s stock price to rise or fall from its existence.

What will the price go up for?

Let’s first look at what causes a company’s share price to rise.

  • Good results of the company: If the company has been performing better than before for half a year, for the whole year, even if its profit has increased or loss has decreased. Yeah Al that sounds pretty crap to me, Looks like BT aint for me either.
  • Big Business Opportunities: If the company gets any big, new business profit opportunities.
  • Government Easy Capital Goods Import Policy. Landing price Inflation should decrease. Landing loan interest rates are more beneficial for entrepreneurs. Reduced income tax excise tax and sales tax rates.
  • FII Purchase: If foreign financial institutions continue to buy this stake and raise the amount that can be bought. Due to the increase in FDI - Foreign Direct Investment coming to our country.
  • Buy Back, Merger: The owners who run the company are the promoters who own a lot of the shares that come forward to buy their company shares from the external market Buy Back. Merger has been linking this company with another good company.
  • Splitting of shares: Making a share with a home price of 10 rupees, 5 or 2 or 1 rupees.
  • Switching Group in the Stock Exchange: Currently, F&O is allowed not only in the Cash Market but also if it is transferred by the stock market from the list in the moderate group.
  • Listing of shares of these companies in US stocks such as Nasdaq, NYSE etc. There is a rise in the price of those shares.
  • Tax concessions: Tax policy changes in favor of the company, such as the budget in government announcements, other policy changes coming Export policy. Government export policy that benefits companies. Policy announcements in favor of businesses, from the government.
  • Short covering: Speculation by mistake when the company is in good condition If a lot of people sell a lot of shares, when they buy them back in a hurry.
  • If the ongoing strike etc. in the company is stopped. If the company wins in cases where something big money has to come.
  • If their main competitors are in big trouble.
  • If there is a shortage in the market for their products and their input raw material prices fall, it is easy to get.
  • No peace, no war, no civil unrest. World dying crude oil prices.
  • Rising rupee value, landing foreign currency value. But this will affect the profits of industries that depend on exports. So that their share prices will fall.
  • Statistics, GDP: The release of good statistics on the national economy. Good agricultural production. This will determine GDP growth.


What will the price go down for?

Let's see for what things a company's share price goes down.

  • The business profit result of the company did not come as expected.
  • Profit booking comes when selling shares when a lot of people need money because prices have gone up a lot in the short term. If more holidays come in between. Yes, next Saturday, if other holidays come with Sunday, the market will go down a bit. Then climb up, this is a different matter.
  • Sudden losses include storms, floods, earthquakes, and terrorist attacks.
  • Great corruption in the government, in the company, in the stock market. Fearing that new taxes and tax exemptions will create adverse conditions, both before and after the central and state budgets.
  • As the parliamentary election approaches. In fear of what the new government will look like. This is a major factor in the fear of a stable government after the election.

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