Why Does the Stock Market Go Up and Down Daily?
If you are new to the stock market, you might often wonder: Why did the market fall today? Why is Nifty up even when news is negative? Why do stock prices change every day? The answer is simple — stock markets move because of demand and supply . Let’s understand this step by step in simple language. The Basic Rule: Demand and Supply Stock prices move based on one simple rule: 👉 If more people want to buy → price goes up 👉 If more people want to sell → price goes down This constant buying and selling causes the market to move every day. What Increases Demand in the Market Several factors increase buying in the market: 1. Positive News Good news like: strong company earnings economic growth government policies can increase investor confidence and push markets up. 2. FII Buying When foreign investors invest large amounts of money, demand increases and markets rise. 3. Interest Rate Cuts Lower interest rates make borrowing cheaper, which increase...