Factors Affecting the Finances of the Stock Market
Stock prices are influenced by a mix of fundamentals such as earnings and profitability, technical factors such as inflation and market sentiment, which reflect investor psychology. The purpose of the article is to present the most important factors: they will determine stock prices in the future. stock markets worldwide. To achieve the purpose of this study, many previous studies have been conducted. These studies reveal empirical evidence that regulatory policy announcements, trading activities by different investors, revaluation of some factors such as inflation have the power to move the market as a whole higher or lower. Other factors, such as corporate profits, can move a single company or industry. This article revisits previous studies from various studies on factors affecting stock price in both developed and developing economies. These: 1. What key factors move the markets and influence their price action? 2. How investors can try to use these factors to their advantage even as these issues impact the market. This study examines the impact of behavioral finance on stock market volatility. The primary objectives are to explain the reasons behind changes in the S-amp. The six-factor model that explains changing share prices of nine European car manufacturers from a macroeconomic perspective. This study provides empirical findings on the impact of institutional variables on corporate stock price. performance. To identify the influence of companies, this blog will provide you with a guide to the key factors impacting the Indian stock market. FACTORS AFFECTING THE INDIAN STOCK MARKET. SUPPLY AND DEMAND. RBI AND SEBIs: First, we compare the predictive performance of the boosting approach with that of the benchmark candidates and then we delve deeper into what drives the improvements in forecast accuracy. Finally, we briefly discuss the nature of the impact that the drivers have on stock market volatility. 3.1.A well-functioning stock market not only plays an important role in the development of the financial sector, but also contributes to the economic progress of any country. In light of this, the study examines three major determinants such as institutional, macroeconomic and policy aspects required to create the stock market, interest rates and inflation. Interest rates and inflation are crucial economic factors that affect the stock market. When interest rates are high, financing costs rise, which can lead to lower consumer spending and lower corporate profitability. Inflation, on the other hand, erodes purchasing power and affects investor sentiment. The debate between modern financial theory and behavioral finance theory on the influence of non-financial factors on stock prices is still ongoing. Modern financial theory holds that the stock market is efficient and that stock prices reflect all available information, while behavioral finance theory argues that psychological and emotional factors are influential. INVESTOR BEHAVIOR REGARDING SHARES. MARKET. Infanta A Dr.KUMAR N. School of Business Administration, Professor, School of. In fact, liquidity in the stock market is of paramount importance to the economy. Ellington 2018 emphasized that during the crisis period, lower liquidity levels negatively hinder economic growth. Apergis et al. 2015 also concluded that the..