The US share market retreated on Thursday after a disappointing round of economic data. The central bank cut the repo rate and cut its projection for inflation from 3.1 to 2.8 per cent. Global growth and corporate earnings have been hit by the US-China trade spat. The central bank’s decision has helped ease some concerns.
The stock market is one of the most important avenues for companies to raise capital. Compared to the debt markets, stocks are considered to be a safer and more secure way of raising additional financial capital for expansion. Furthermore, the exchanges offer liquidity to investors. This is one of the most appealing features of investing in stocks. This liquidity is a result of the efficient-market hypothesis, which states that an asset’s price reflects all of the information available to investors.
In terms of individual stocks, 11 of the 30 Sensex stocks ended in the green today. Among them were HDFC, ITC, and L&T. However, the market was volatile and stocks fell in different sectors. Traders should monitor the news carefully. It’s important to note that there are some companies with a large number of shares.
When buying a stock, you’ll want to keep your investment strategy in mind. Many people invest with the intention of building a portfolio and maximizing their return. In other words, you’ll want to make sure the company you’re buying is a good fit for your investment strategy.