Market participants react quickly to economic news, impacting stock prices. Keeping track of macroeconomic indicators helps optimise stock portfolios for better returns. Globally the market participants are seen reacting to information very fast.
A positive news update about the economic growth of a country can send stock prices surging whereas negative news around it can see a flight of capital. In this process prices of a lot of stocks change, impacting the portfolios of many investors. Here is how one should look at these macroeconomic indicators:
GDP growth
Investors want to benefit from the rising economic activity.
Growth in the gross domestic product (GDP) of a country attracts investors.
As more investors chase stocks, the stock prices tend to go up.
India is going through the phase of GDP growth when many countries the world over are facing challenges to maintain growth or grow.
