Markets and individual stocks react to events.
That’s why investors should keep track of some key economic indicators to understand and decipher these eventsMonetary policy is one of the most important event. Increasing the repo rates means that the Interest rate will get higher, which markets don’t like.An increase in reverse repo rate is not great either as it tightens the supply of money. Likewise, Increasing interest rates curbs inflation and vice versa.
Inflation data is released every month by MOSPI. As a consumer, CPI inflation data is what you need to track. IIP measures the industrial production activity.
Increase in IIP cheers the markets and lower IIP disappoints the market
PMI is a survey-based business sentiment indicator. The PMI number oscillates around the 50 marks.
Above 50 is good news to markets and PMI below 50 is not.
The Budget is an important market event where policy announcements and reform initiatives are taken. Markets and stocks react strongly to budget announcements
Corporate earnings are reported every quarter. Stocks react mainly due to the variance in actual number versus the street’s expectation.
Buying and selling stocks just based on company specific information may not be sufficient.
It is also important to understand the events that influence the markets.
Watch more to grow more.
Investment in securities market are subject to market risks, read all the related documents carefully before investing
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