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economic analysis in stock market

 Economic Analysis Economic Analysis is a study of the general economics factors that go into an evaluation of the security's value. The stock market is an integral part of the economy. when the level of the economy. When the level of the economic activity is low, stock price are low, and when the level of the economic activity is high, stock prices are high, reflecting a booming outlook for the sales and profits of the firms. an analysis of the macroeconomic environment is essential to understand the behavior of stocks prices. the commonly analyzed macroeconomic factors are as follows: Gross Domestic Product (GDP) Savings And Investment Inflation Interest rates Budget and Fiscal Deficit Tax Structure Balance of payment Foreign Direct Investment Investment by Foreign institutional investors International Economic Conditions Business Cycle and investor psychology monsoon and Agriculture infrastructure facilities demographic factor Gross Domestic Product (GDP) The GDP represents the ...