News or Factors That Affect Stock Prices

Many People has always wondered how news or different factors has an effect on stock prices. Essentially, It has two parts

First- The type of News of Factor
Second- Its nature, i.e. positive or negative

One has to be smart enough to decode the news and take the position quickly in the stock. People who are adroit in this do make good short term gains even if we leave the insiders or fund houses that generally have good information much before the release of news (I presume so).

I was reading an article from some research paper that did a study on relationship of fund house investment and their holding in a particular stock. What they found out was most of the fund houses exit the stock much early than the release of numbers by the company.

Considering above I think there is little opportunity but then chances are that news is there in market and fund houses are smart enough to read the signs. What individual investors look for is immediate gains but if they play right on news than chances are sooner of later one might see the results.

As I write, I don’t see many clues about anything except that at times it does work. So if it does than why not try it through paper trade to start with.

Below are different types of news that affect stock price. Keep your eyes and ears open and try to come out with a pattern. Who knows it might work for you. Good Luck.


1. Crude Prices
2. Macroeconomic Data (IIP, Inflation, GDP, Industrial Growth, Consumer confidence,
Employment, Unemployment etc)
3. Government/Politics
4. Draught/Monsoon
5. Federal Policies (Interest Rates, Monetary Policies)
6. Company Results
7. Global Cues
8. FII activities
9. Stock Manipulations
10. Insider Trading
11. Mergers
12. Acquisitions
13. Money Markets
14. New Orders
15. Buy Back
16. Bonus
17. Split
18. Tax Benefits
19. Change in stock Group
20. Inclusion in an Index
21. Loss of customer
22. Short and Long Positions
23. Spinoff of arms
24. Lawsuits (win or loss)
25. Change in Demand
26. Change in Supply
27. Budget
28. Raw Materials
29. War
30. Terrorist Attacks
31. Management Changes
32. Dividend
33. Rights Issue
34. Joint Ventures
35. Business Expansion
36. New Invention
37. Rumors

If you know more than Leave a comment. I am very much interested to build this list further.

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Market Poised for Stabilization- Kotak Mahindra, Punj Lloyd still looks good

Recent events in US markets has taken some of the worry. While Bear Stern result has taken everyone offgaurd it is better show put by Lehman, Goldman Sachs, and Morgan Stanley which has given some respite to the market. Fed Rate cut was followed by a warning on Inflation which again is a sign of worry. However there is strong signals that in spite of metal, industrial, and energy stocks people would now move towards Financial and Consumer Stocks. Also there are signs that Pharma sector has bottomed out.

While the above was related to US markets, India dependence on US is a clear and plain truth. However the analogy of investment can vary.
I was particularly impressed by Kotak Mahindra and Punj Lloyd before fall. Truth is they look attractive now too.

Take your Pick. I am of opinion that its bottom surfing that we doing and soon things would start to move up. It can be months but hope is not lost.                                                              

House of Pearl Fashions

A very good Analyst has given Target Price of House of Pearl Fashions Rs. 425+ in short to Medium Term.                                                              

Unitech- Analyst View

According to Reports a Big Analyst has startd to cover Unitech and has given Target Price of 700+ in short to Long Term.                                                              

Breaking News- ITC Limited

A leading analyst has raised the Target Price of ITC for medium to long term from 180+ to 200+                                                              

Hindustan Unilever- Buyback may improve sentiments

HUL announced that it may consider sharebuyback in its 29th July board meeting.

http://www.business-standard.com/common/storypage.php?autono=291843&leftnm=1&subLeft=0&chkFlg=

While this can give stock a beeost in near term but stock earnings is still a view which affects the fundamental view on stock