Economy(Stock Market Trading)

Economy(Stock Market Trading)

Economics of Indian

Every country of economics condition has to move toward good time and poor time. In the short, by economics we can watch condition of country which can helpful to determine about poor or good time for investors. An economics is large set of sectors interconnected economic study of tables and charts, statistics and numbers of production, exchange, distribution, human behavior and consumption of goods, services of a country or other area. Human have to needs two type. One is primary needs which includes everyday such water, food, air, clothes etc. Secondary needs such as feels, entertains, etc. all of the secondary & primary related factors connected to economic.

How Economic influence to investors?

Suppose that, we know more about our country economic and its primary factor. We can imagine some time about next future like import & export, demand, demand against supply, etc. for example Suppose, You know about fundamental of Coal by studied economic of our country so, you can also expect future of it like day to day, Coal & oil demand increasing and supply and production limited for us. Coal & oil price will hike. Also investors use to determine local sector through weather cycle like rainy, summer production and more demand and supply

Words of economics are demand, supply, prices and Quantities. Here many sectors and factors related to Economics of country which interconnected each other

Primary Sectors: - In this theory, all factors are basics of production of raw materials such as coal, steel, oil, corn, iron etc

Secondary sector: - Involves the change of raw such as manufacturing steel into cars, or textiles into clothing.

The GDP - Gross domestic product of a country is evaluated of the size of its economics and GDP only includes economic activity for which money is exchanged.

Everyday Exchange of stock market direct or indirect connected to economics of country.

How will he measures of good or poor economics?

There are number of ways to measure economic activity of a nation. These methods of measuring economic activity include

Unemployment – (Unemployment rate is used in economics studies and its index)

GDP (Gross of domestic products) – it is nation income and outcome for given country’s economics.

Consumer Demand – personal expenditure for human.

Interest Rate – Rate of interest is fee on the borrowed capital. Bank need to borrow money bad circumstance economic or requirement.

Government Debt – Central bank, Federal bank etc.

Rate of inflation – Rising into prices which WPI is calculates by government on Thursday.

Balance of trade - Exports and imports

Best way to know about economics of any country by watching news channel and proper channel of broadcasting.

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Inflation (Stock market Trading)

Inflation (Stock market Trading)

Explaining Of Inflation

Inflation means rising general level of price of goods and services over time, later time purchasing power is falling. It is measure annually percentage rising. Inflation result of pressures in expressing economical condition.

Explaining By Examples

For example suppose that cost of a thing at Rs.100 few months ago, present cost around Rs.120 that thing. Here is Rs.20 deference can say inflation.

Trying to explain by 2nd example of understanding inflation respects to stock market, Economical rate of inflation is at 7% and we invested our money inflation was 12% around. This investment decreased into our saving Value its profit. Therefore Management of investment should be proper and decline risky.

In the economical cycle, Good business was accompanied by raising level and poor business falling prices level. It’s generally think that A Little Inflation helpful profits. At least, Low Rate of inflation is good whole sectors.

There are many points which related to inflation, but we should mind of weekly declare & annual level of it referenced to stock market. Inflation is declared every Thursday after 5:00 pm. Inflation (WPI) is one them factor which is directly connected to our stock market. It’s most important for traders what weekly inflation data.

Today, increasing or decreasing the money supply is mainly maintained by India’s central banking authorities Reserve Bank of India and the effects of increasing the money supply are further increased by credit expansion due to the Fraction-Reserve Banking system employed in most economic and financial systems in the world. Inflation in the Indian is on estimated base of fluctuation in the Wholesale Price Index. (WPI)

Causes Of Inflation

There are two major types of inflation

Demand: - Much money for purchasing few things. In other words, if require of that thing is increasing faster than supply, price will increase. In this conduction, price is raising so, inflation rising as per definition.

Cost: - In this matter, cost of row materials (input) which need to Company is boosted, company need to raise prices to maintain their profit of business. Causes of increased row materials may tax, import, interest, etc.

Measuring inflation of India

There are two type method using measuring to inflation which are CPI (consumer price index and WPI (Wholesale price index).Wholesale price index (WPI) is the measure for inflation in India. The government comes out with WPI inflation figures every Thursday. In the calculation of WPI, the 3 major variables are Primary articles, Fuel, power, light and lubricants and manufactured products. Manufactured products have always enjoyed more weight in the calculation of WPI.

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