The document discusses factors that affect share prices, including supply and demand, interest rates, current events, and exchange rates. Supply and demand directly impact share prices, with prices rising when demand exceeds supply and falling when supply outweighs demand. Interest rates and monetary policy decisions also influence prices, with higher rates typically lowering prices. Current domestic and global events can positively or negatively impact investor sentiment and market prices. Exchange rates also play a role, as a stronger rupee against the dollar is often correlated with economic growth and higher stock values.

1. FACTORS AFFECTING
SHARE PRICE

2. INTRODUCTION ON STOCK MARKET
• A stock market is a place where investors can trade in various financial
instruments such as bonds, shares and derivatives, and stock exchanges
mediate their buying and selling.
• The stock market is further classified into primary and secondary market.
• Primary market is the one where companies float shares for the first time to
the general public through IPO, and then they are traded in the secondary
market.

3. FACTORS AFFECTING SHARE PRICE:
• Supply and Demand
• Interest rates
• Current events
• Exchange rates

4. •Supply and Demand
This is one of the most common factors affecting
stock prices. Imbalance between supply and demand
can significantly affect stock prices. If there’s a
demand for the stock of a particular company and its
supply is less, then it’s price will escalate and vice-
versa.

5. •Interest rates
Another factor affecting share prices is interest rates.
Note that the Reserve Bank of India decides on key
monetary policy rates such as repo rate, reverse
repo rate and so on, regularly to keep inflation in
check and stabilize the economy.

6. •Current events
The ongoing events, domestically and internationally, is
one of the major factors influencing share prices. If the
events are positive for the economy and investors’
sentiment as a whole, the same will push up prices. On
the other hand, if they have a negative effect, it will bring
prices down.

7. •Exchange rates
Value of Indian rupee against dollar also has its
effect on share prices. In fact, this is one of the
most significant factors affecting share prices. A
strong rupee is an indication of economic growth,
and it pushes up stock prices on most occasions.

8. THANK YOU
• R. Shanmuga Dharshini
• 20BCC048