Stock Market Indicators
Stock market traders and investors in general try to understand the various factors that cause the stock market to fall and rise. News, corporate earnings, political atmosphere, market sentiments and policy interest rates are strong indicators. Likewise, economic indicators such as GDP, inflation and industrial output, are some other economic data which can help form an opinion or view on stock markets or specific company shares.
There is a lot of economic data which is frequently released by the government, with each playing a crucial role in the overall economic growth, which could be useful to estimate stock market movements. For instance, quarterly GDP data indicate the health of the overall economy and so does the monthly index of industrial production (IIP) data. For new investors in the stock markets, many of this information may be overwhelming, but over time by observing trends, correlations between economic indicators and stock market movement can give them insights into how the markets and specific stocks in which they have investments or wish to invest will behave.