Share prices move when expectations change. The strongest price reactions come from changes in earnings power, discount rates and perceived risk.
Earnings and guidance
Beginner
Quarterly results, management commentary and guidance revisions reset market expectations immediately.
Why it mattersEven strong companies fall if the market expected more. Earnings surprises often matter more than the raw number itself.
Watch out forPrice reactions depend on both the result and positioning before the announcement.
Interest rates and liquidity
Intermediate
Higher rates reduce the present value of future cash flows and usually pressure richly valued growth stocks.
Why it mattersBanks, NBFCs, real estate and long-duration growth names all react differently to rate shifts.
Watch out forThe first-order move may come from rates, but the second-order move often comes from how rates affect credit and demand.
Inflation, currency and commodities
Intermediate
Input costs, FX moves and commodity prices feed directly into sector margins.
Why it mattersIT reacts to USD and global tech demand, pharma reacts to regulation and exports, and energy reacts to crude spreads and refining economics.
Watch out forMacro drivers are rarely one-dimensional. Currency strength can help importers while hurting exporters.
Sector rotation and risk appetite
Beginner
Capital moves between defensives, cyclicals, value and growth as the market narrative changes.
Why it mattersA stock can be fundamentally solid and still underperform if money is rotating away from its sector.
Watch out forSector leadership changes faster than annual fundamentals, so use both macro context and company data.