2007-03-08 17:53:20 · 3 answers · asked by hemang k 1 in Business & Finance ➔ Investing
well for market there are lots of macro and general factors that affect the trends
when higher the inflation rises it means that higher the price of products.. so lower the savings.. savings include investment in shares so demand for shares are lower so price decreases..
the other factor is that when inflation is higher.. companys profit reduces since it has to pay higher for raw materials and salary to compensate for inflation but it cant increase the final product price as to overall increase.. it incurs lower profit or loss too...
this is how inflation data affect stock market..
2007-03-08 18:50:35 · answer #1 · answered by heartly r 2 · 0⤊ 0⤋
Current world markets are all generated by random computer schematics.
The public still believes that actual value exists, so there are still some trades that can be very profitable.
I stopped trading years ago. Reality is much more invigorating.
2007-03-08 17:59:04 · answer #2 · answered by Anonymous · 0⤊ 0⤋
^ inflation > ^ intreast rate > ^cost 4 industry > less income > less EPS > fall in share price
2007-03-09 04:26:57 · answer #3 · answered by dinu_pawar 5 · 0⤊ 0⤋