There are many factors that could weigh on the share market today. A coronavirus pandemic in China, continued lockdowns in the Chinese stock market, and the conflict between Russia and Ukraine all pose potential risks. Additionally, the fiscal policies of developed economies remain biased towards spending, while key central banks have been increasing interest rates and reducing bond purchases. All of these factors could contribute to the overall negative sentiment on the market.
On the positive side, global stock markets bounced back on Monday, despite a slump on Wall Street due to higher-than-expected inflation numbers. London and Paris market benchmarks gained by more than one per cent, while Tokyo gained three per cent. Meanwhile, futures for the S&P 500 index were down by 0.4 percent.
While today’s economic news is light, some companies are releasing results that could affect the share market. Tata Steel and Eicher Motors are slated to report their Q1 results. Ashok Leyland and Bharat Forge are also expected to report results. Finally, PFC is expected to release its Q1 results.
Having a thorough understanding of how the share market works will help you make better investment decisions. First, the market works like an auction system, and the price of a stock is determined by the demand and supply of that particular stock. The underlying business fundamentals of the company are not taken into account when the price is determined.