If you are just a newbie and want to start trading in the stock market, then reading the financial news sections of the newspaper is a must.
If you are already trading in the stock market then you must know that the financial news related to the stock market and companies have a significant impact on the price movement.
Any financial news related to the country’s economy like the GDP numbers, stock market, companies that are listed in the stock exchange plays an important role in the movement of the prices.
For example, if the company announces that its profit or revenue has risen more than that in the last quarter or the company has launched a new line of its products/services then it will have a positive impact on its stock’s prices.
Similarly, if the company announces that a key executive/director of the company has resigned from its management board then it will have a negative impact on its stock’s prices.
One needs to be regularly updated with the financial news inflow if he/she is actively trading in the stock market.
There are various platforms these days by which one can be regularly updated with the current financial news.
The most popular and oldest form of reading financial news is from the newspapers.
Some of the most common business newspapers in India are Economics Times, Mint, The financial express, Business Line and so on.
In this blog we will be discussing How should one read the financial news taking the example of The Economic Times newspaper:
How to read the financial sections of the newspapers?
When reading the newspapers, one should divide the news into:
- Economy: Any economic news which may affect the Indian financial markets such as Inflation, GDP, Monetary Policy, Fiscal deficit related news.
- Sectorial: Any sector news such as Auto sales that may affect the prices of the auto stocks listed in the exchange.
- Stocks: The company news that directly impacts the stock prices of the companies which are listed in the exchange.
- Market Data: The market data which helps the traders to do sentiment analysis of the financial market.
What to read in the different sections of the newspapers?
1. The front page:
The front page of any financial newspaper consists of a small section referred to as Market Tracker which tells us how the indexes of the stock market such as Nifty, Sensex, BSE midcaps, Gold, Silver, USD/INR etc. did in the last trading session.
2. Politics Section:
On this page, one can read only news that is related to any major political events such as the upcoming results that may impact the financial markets directly or indirectly.
3. The Companies Section:
On this page, all the companies’ related news is published. One should read all the news in detail especially related to those companies which are listed on the stock exchange.
4. The Economy Section:
This section contains all the news which may affect the economy of our country such as GDP, Inflation, fiscal deficit related data news which may directly or indirectly affect the financial market.
5. Stock Recommendation Section:
This section of the newspaper contains stock recommendations for buying, selling or holding the stocks. One should remember that they should analyse the stocks that are recommended in the newspapers on their own and not blindly follow the recommendations.
Daily Update Section in StockEdge:
If you do not have time to read the detailed financial news then you can check the daily updates section in the StockEdge:
This section in StockEdge provides financial news in one-liner which the traders can easily see and they can also check how the news have impacted the sector or stock by clicking on it:
You can also watch our video on Newspaper Analysis of Economy and Stocks below:
If you are new to the financial market and actively want to participate in it then start reading the financial news regularly. This will help you in developing a habit of reading financial newspapers every day and keeping track of the financial news that may impact the stocks in which you are trading or investing.