How does it go up and down sensex and nifty?
It depends on lot of reasons. Mainly the worldwide and nationwide news broadcast. News about wealth, about any particular division or industry etc.
It also depends ahead political news such as the vary in the government. For example in 2014 during loksabha selection the market rallied when Narendra Modi was elected as New Prime Minister. There was pleasure all over the country and the market expected that the fresh government would make different reforms that would boost the rusting wealth of the country.
It also rise and fall when there is vary in financial policies. For example when there is lessen in repo price of any country it means there would be excess of money in the market and this is a good sign and hence the market rolls up and vice versa.
More frequently than not it rise and fall due to worldwide matters. In August 2015 share markets about the globe faced a major correction due to Chinese deflation of its currency. Its wealth is slowing fall and that fact isn’t only pulling its own markets but markets about the globe as well.
It rise and fall when there is vary in commodity markets. Very lately the share market is declining due to reduce in oil rates. These are the major causes of market movement. However, there are a lot of other reasons to which market replies but large activities are mainly governed by over causes.
On the other hand, if more people wanted to sell a share than purchase it, there will be larger supply than demand, and the rate will drop. (Basics of economics!)Understanding supply and demand is simple. What is complex to know is what makes people like a particular share and dislike another share. If you know this, you would know what people are purchasing and what people are selling. If you know this you would know what rates go up and what rates go fall.
The most significant reason that influences the value of a company is its earnings. Earnings are the revenue a company makes, and in the long run no company can stay alive without them. It makes sense when you suppose about it. If a company never makes money, it is not going to continue in business. Public companies are required to report their earnings 4 times a year (once each quarter).
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