How Does Economy Impacts Stock Market ?

=> There is an important impact of the economy on the stock market and economy is the main factor that drives the stock market and decides the direction of the stock market.

- If the Economy of the country is good then it shows that the industries as well as companies of the country is performing well and it is generating an good profits so it will make the stock market rise and make their shareholders wealthy by equity profit gains and by giving them dividend.

=>  Main Economic Data's That Impact Most  Stock Market :-

- GDP

- IIP

- Govt Debt

- Inflation Rate

- Import Data

- Export Data

- Currency Rates

- Demand And Supply Data



=> There Are Two Types Of Economy That Affects The Stock Market :-

1.) Indian Economy

2.) Global Economy

=> Indian Economy :-

- If GDP is going down of the country then it shows that growth of country's economy is going down and it also impacts on the stock market as there will be less demands of the product and the production will also decreased.

- If inflation rate is increasing then it shows that the products and the services is getting costlier and the rupee is getting weaker.

=> Global Economy Impact :-

- If any other country is suffering from the economic slowdown and if that country is importing goods from our country and it reduce the number of good that it imports then it will affect our exporting data and also will impact on our economy.

- If some issues occurred in other country and if we are importing oil or goods from that country and if they increase the price or tax then it will impact on our country's economy as well as stock market.

=> Conclusion :-

- It Shows that economy and stock market is related to each other and mostly it will be in the same direction ...