Blog

finance

GDP role in economy and stock market

Posted by NIFM

Gross Domestic Product (GDP) is defined as the total production of goods and services within the country in a financial year. It is very useful to measure the growth of an economy. The economist watch the GDP numbsers to predict the future growth of tehe economy. High GDP number means high growth of the country  and low GDP growth means low growth, when the GDP of a country is low it creates the problem of recession, inflation that means less jobs, less production and opportunity for all. whenever this kind of problem occurs in the economy RBI tries to control the situation like reduces the interest rates to enhance the country growth. GDP data is also important for the stock market traders in the equity and commodity market. High GDP growth improves the sentiments of equity market while in commodity segment it is positive for base metals and crude. Lower GDP growth creates negative sentiment for equity market also negative for base metal but positive for bullions (Gold and Silver)

Post Comments

Sponsored · Partner offer
5paisa

Open your demat account in minutes

  • Free account opening*
  • Quick digital KYC
  • Secure & hassle-free process
Open your account now

*T&C apply as per 5paisa. NIFM is not a stockbroker; account opening and services are provided by 5paisa Capital Ltd. Investments in the securities market are subject to market risks.

5paisa KYC verification on a mobile phone