Live Other Market News, Stock Market News Updates
When we are trading equities, why do we need to worry about Live other market news?
Are the Live other market news really relevant when we are looking at stock market
news updates? The answer is yes. Equity markets are not a market in isolation but
they represent a summation of different markets. Hence when you need to understand
equities you need to understand the impact of bond markets, call money markets,
commodity markets and the forex markets. LKP Securities has a very quick and easy
way to track all these factors via their Other Markets page. The other markets page
actually takes a more dynamic approach to equity markets and captures important
cues from other related markets. The impact on equities may not be direct but there
is certainly an indirect impact on equity markets…
The “Other Markets” report on LKP Securities…
LKP Securities has devoted an entire page to live updates on other markets. These
include the currency markets, the call market, the bond market and even the commodity
markets. They are included because all these markets tend to have an impact on the
equity markets. The idea is not to give a recommendation on any stock but to caution
on the risks and apprise you on the opportunities from other markets. Here is why
the Other Markets report is useful…
- The currency market cues are important because there are key industries
like IT, Pharma, auto ancillaries etc which are vulnerable to movements in the INR/Dollar
rate. Some sectors benefit from a strong dollar while some sectors benefit from
a weak dollar. These currency cues are to keep you informed about the possible impact
on equity due to currency shifts.
- The call market is the short term debt market and consists of treasury
bills, Commercial Paper, CDs etc. Unlike the long term bond market, the short term
debt market is driven more by liquidity considerations and are an indicator of the
liquidity in the system. Normally, equity markets react negatively to liquidity
tightness and hence this cue is very critical.
- Long term bond markets give cues like direction of interest rates,
direction of bond yields, cost of debt etc. Cost of debt is important for companies
as it impacts their cost of debt. Bond yields normally are inversely related to
equity prices in the sense that if the bond yields go up then there will be a proportionate
demand for higher yield on equities too. That will lead to lower prices and hence
it becomes an important cue.
- Lastly, commodity market cues are also critical as the index of
stocks is largely commodity driven. Commodities like oil, metals and even agri inputs
have a strong impact on company performance and therefore on stock prices. It helps
to pick up key trends well in advance.
The purpose of the Other Markets report is not to take trading calls on the equity
market but to forewarn you of risks and to give you an idea of the opportunities
that you can be available in the market. Remember, equity cues come from the most