Stock market is also known as equity or share market. It represents ownership claims in companies and businesses. It is comprised of securities listed on a public stock exchange. Many investors use this market to earn an income or even invest in a business. It can be quite challenging to understand what is going on, but understanding the basics is crucial.
Inflation fears continue to weigh on the markets and investors are looking for some relief. The Fed has been raising interest rates aggressively to curb inflation, and it is widely expected to raise rates again at their meeting in November. However, some investors are hoping for a pause until at least 2023. Also helping the market are mostly solid third quarter earnings reports from companies.
While the stock market is under stress, many factors are pushing it up or down. A coronavirus pandemic in China and a continuing conflict between the Ukraine and Russia are just some of the issues causing the current volatility. In addition to these concerns, the fiscal policy of many developed economies is tilted in favor of spending, while the monetary policy of key central banks has raised short-term interest rates and trimmed bond purchases.
The Sensex, the leading index in the stock market, climbed almost 500 points, led by the PSU Bank index. The Auto, Metal, and Realty indices also saw reasonable gains. SBI, Bajaj Finserv, and NTPC were among the biggest gainers, while Hindalco, JSW Steel, and L&T declined. Meanwhile, Electronics Mart India made a stellar debut and was listed at a 53% premium.